At lunch on Wednesday the S&P/ASX 200 index is on course to give back yesterday’s solid gains. At the time of writing the benchmark index is down 1.15% to 6,469.7 points.
Here’s what has been happening on the market today:
A2 Milk Company crashes lower.
The A2 Milk Company Ltd (ASX: A2M) share price has crashed lower after the infant formula and fresh milk company’s earnings fell short of the market’s lofty expectations. In FY 2019 the company reported a 41.4% increase in revenue to NZ$1,304.5 million and a 46.1% increase in EBITDA to NZ$413.6 million. Whilst this was a very strong result, it didn’t quite live up to the market consensus estimate of NZ$420.6 million. Its shares are down 14% at lunch.
Domino’s disappoints again.
The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is down 1.5% at lunch following the release of the pizza chain operator’s full year results. As was widely expected, the company once again fell short of its full year profit guidance. Domino’s delivered an 8.9% increase in EBITDA to $282.4 million. Management reiterated its plan to no longer provide guidance.
WiseTech Global soars.
One growth share that did live up to expectations today was WiseTech Global Ltd (ASX: WTC). The logistics solutions company’s shares have surged 7% higher after reporting total revenue of $348.3 million and net profit after tax of $54.1 million. This was a 57% and 33% increase, respectively, on FY 2018’s result. Looking ahead, management expects further strong growth in FY 2020. It provided revenue growth guidance of 26% to 32% and EBITDA growth guidance of 34% to 42%.
Best and worst performers.
The best performer on the ASX 200 index so far on Wednesday has been the McMillan Shakespeare Limited (ASX: MMS) share price with a gain of 17%. Investors have been buying the salary packaging company’s shares following a better than expected full year result and $80 million share buy-back. Going the other way, the worst performer is the a2 Milk Company share price with its decline of 16%. Not far behind is the Nearmap Ltd (ASX: NEA) share price which has sunk 12% lower following the release of its full year update.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019