3 ASX 200 stocks being punished on their results announcements

Three guys in shirts and ties give the thumbs down.Three guys in shirts and ties give the thumbs down.

It’s a rough earnings season day for the S&P/ASX 200 Index (ASX: XJO) and these three stocks aren’t helping it regain ground.

The ASX 200 is down 0.32% at 7,291.1 points at the time of writing.

But that’s nothing compared to the following companies which are falling as much as 5.8% right now on the release of earnings updates.

Let’s take a closer look at what’s got the market bidding them lower.

3 ASX 200 stocks tumbling on half-year results

First up, stock in Nine Entertainment Co Holdings Ltd (ASX: NEC) is struggling on Thursday after the ASX 200 company posted its first-half earnings. Its stock is down 3.4% right now, trading at $1.99 a share.

The entertainment giant revealed a 5% lift in revenue, increasing to $1.4 billion, but sinking profits. Its net profit after tax (NPAT) dropped 16% to $190 million.  

The company also slashed its interim dividend by 14% to 6 cents per share, fully franked.

That was despite its subscription revenues lifting around 9%, excluding its 60%-owned Domain Holdings Australia Ltd (ASX: DHG).

The real estate-focused business posted a 19% fall in earnings before interest, tax, depreciation, and amortisation (EBITDA), coming in at $49.3 million, amid a weaker property market.

Joining the ASX 200 entertainment company in the red is dairy product producer Bega Cheese Ltd (ASX: BGA). Its share price is falling 5.83% right now to trade at $3.39.

While the company’s statutory revenue lifted 11% last half to $1.67 billion, its earnings before interest and tax (EBIT) more than halved, coming in at $20 million. It declared a 4.5 cent per share fully franked dividend for the period – marking an 18% drop.

The company’s branded segment saw 13% growth reflecting price increases and volume growth while revenue in its bulk dairy leg lifted 2% on the back of high dairy commodity prices, but was limited by lower milk availability.

It expects price and mix initiatives will offset cost inflation on a monthly run basis by the end of this fiscal year, with benefits realised in financial year 2024.

Finally, ASX 200 financials stock Insignia Financial Ltd (ASX: IFL) is plunging 4.76% right now to trade at $3.305 apiece.

The financial services provider posted $94.4 million of underlying NPAT for the first half this morning. That marked a 17.1% fall on that of the pcp.

Its funds under management and administration fell $5.5 billion to $285.1 billion as negative market performance took its toll.

Insignia Financial declared a 10.5 cent per share interim dividend – down from 11.8 cents per share in the pcp. CEO Renato Mota commented:

We continue to progress our integration and simplification priorities, delivering ahead of a three-year timeline and accelerating synergy benefits alongside prudent cost control. Our ongoing commitment to simplification and improved focus across the business has been demonstrated through various milestones.

The post 3 ASX 200 stocks being punished on their results announcements appeared first on The Motley Fool Australia.

4 ways to prepare for the next bull market

It’s a scary market. But staying in cash when inflation is surging likely won’t do investors any good either.

And when some world-class companies have pulled back considerably from their recent highs… All while their fundamentals remain unchanged…

It begs the question…

Do you have these 4 stocks in your portfolio?

See The 4 Stocks
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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