Why Fisher & Paykel, Netwealth, Stanmore, and Terracom shares are dropping

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.1% to 7,458.2 points.

Four ASX shares that have failed to follow the market higher are listed below. Here’s why they are dropping:

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price is down almost 3% to $23.68. This appears to have been driven by a broker note out of Citi this morning. Its analysts have downgraded the medical device company’s shares to a neutral rating on valuation grounds following a strong run over the last three months.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down a further 1.5% to $12.20. Investors have been selling the wealth management platform provider’s shares since the release of a trading update last week. Netwealth reported a significant slowdown in its net inflows. They came in at $2,087 million during the second quarter, which was down 42% on the prior corresponding period and 29% from the first quarter.

Stanmore Resources Ltd (ASX: SMR)

The Stanmore Resources share price is down 6.5% to $3.42. This follows the release of the coal miner’s fourth quarter update. Investors have been selling the company’s shares despite it achieving its second half guidance. Stanmore delivered production of 6.4Mt, compared to its guidance of 6Mt to 6.6Mt.

Terracom Ltd (ASX: TER)

The Terracom share price is down over 3% to $1.00. This coal miner’s shares are also dropping following the release of a quarterly update. Terracom reported operating EBITDA of $150 million from coal sales of 2.05Mt. Management also revealed that the company’s Blair Athol operation remains on track to achieve its full year guidance despite significant rainfall during the quarter. Investors appear to have been expecting an even stronger quarter.

The post Why Fisher & Paykel, Netwealth, Stanmore, and Terracom shares are dropping appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares leaping more than 5% on strong earnings updates

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. 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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