NRW Holdings Limited (ASX:NWH) and Netwealth Group Ltd (ASX:NWL) shares were among the worst performers on the ASX 200 last week…
The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia. –
A disappointing end to the week led to the S&P/ASX 200 Index (ASX: XJO) wiping out all its weekly gains and more. The benchmark index ultimately ended the week 0.2% lower at 6,793.8 points.
While a number of ASX 200 shares dropped with the market, some fell more than others. Here’s why these were the worst performers:
NRW Holdings Limited (ASX: NWH)
The NRW share price was the worst performer on the ASX 200 with a decline of 15%. Investors were selling the contractor’s shares following the release of its half year results. For the six months ended 31 December, the contractor reported a 44% increase in revenue to $1,168 million and a 28% lift in EBITDA to $132.8 million. However, on the bottom line the company posted a disappointing 17% decline in net profit to $29 million. This was driven largely by a significant increase in depreciation.
GWA Group Ltd (ASX: GWA)
The GWA share price wasn’t far behind with a decline of 14.9% last week. The catalyst for this was the release of a disappointing half year result by the leading provider of water solutions products and systems. For the half, the company reported a 4.4% decline in revenue to $197.2 million. Management advised that this reflects an overall decline in market conditions. Things were even worse on the bottom line, with normalised net profit after tax falling 17% to $20 million.
Northern Star Resources Ltd (ASX: NST)
The Northern Star share price was out of form and dropped 13.9% over the five days. This appears to have been driven by a broker note out of Morgan Stanley last week. After updating its financial models to reflect the merger with Saracen Mineral, the broker has reiterated its underweight rating and put a $12.95 price target on the company’s shares. Though, it is worth noting that the Northern Star share price has now dropped below this price target.
Netwealth Group Ltd (ASX: NWL)
The Netwealth share price was a poor performer and dropped 13.8% lower last week. Investors were selling the investment platform provider’s shares despite it delivering strong growth during the first half. For the six months ended 31 December, the company recorded a 30.1% increase in EBITDA to $40.5 million. This was driven by strong growth in Netwealth’s funds under administration over the last 12 months. Concerns over its second half margins may have been weighing on its shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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