The S&P/ASX 200 Index (ASX: XJO) is on course to bounce back with a solid gain on Thursday. In late morning trade the benchmark index is up 0.75% to 6,045.5 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The Advance NanoTek Ltd (ASX: ANO) share price is down 9% to $3.43. This follows the release of the advanced materials company’s full year results. Although Advance NanoTek reported a 121% increase in profit before tax to $7.46 million, it fell short of the guidance of $8.4 million it gave on 11 May. In addition to this, the company warned that its first half performance will be weak. This is due to distributors selling down inventory before reordering.
The ELMO Software Ltd (ASX: ELO) share price has fallen 7% to $6.49. This is despite the cloud-based HR, payroll, and rostering software provider delivering a strong full year result this morning. ELMO reported annualised recurring revenue (ARR) of $55.1 million and statutory revenue of $50.1 million for FY 2020. This represents a 19.7% and 25% increase, respectively, over the prior corresponding period. Strong customer growth played a key role in this solid top line result. Next year management expects its ARR to be in the range of $65 million to $70 million, which represents year on year growth of 18% to 27%.
The ResMed Inc. (ASX: RMD) share price is down 5% to $26.55. The catalyst for this was the release of its fourth quarter and full year update. Although the sleep treatment-focused medical device company delivered a very strong year of sales and profit growth, investors appear concerned by softer than expected mask sales during the pandemic. Management’s guidance for FY 2021 was cautious but optimistic.
The Scentre Group (ASX: SCG) share price has dropped over 2% to $1.92. This follows the release of an update on its expectations for the first half. The shopping centre operator advised that it plans to report a 10% decline in the carrying value of its property portfolio because of the pandemic. Scentre also expects to report net operating cashflow in excess of $250 million for the half. This compares to net cash flows from operating activities of $619 million during the first half of FY 2019.
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More reading
- Scentre share price falls 3% following results update
- ResMed share price lower despite delivering strong growth in FY 2020
- Is the National Storage share price a buy in August?
- ELMO Software share price on watch after delivering more strong growth in FY 2020
- 5 things to watch on the ASX 200 on Thursday
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 and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Advance NanoTek Limited. The Motley Fool Australia has recommended Elmo Software, ResMed Inc., and Scentre Group. 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 post Why Advance NanoTek, ELMO Software, ResMed, & Scentre shares are dropping lower appeared first on Motley Fool Australia.
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