In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is out of form and in the red. At the time of writing, the benchmark index is down 0.4% to 8,773.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is down 40% to 92.5 cents. Investors have been selling the small business lender’s shares after it increased its cost of risk and downgraded its earnings guidance. Judo Capital now expects its FY 2026 cost of risk to be in the range of $116 million to $122 million. This has been driven by three exposures across different sectors that have recently emerged. As a result, Judo Capital now expects its profit before tax in FY 2026 to be between $163 million and $169 million. This is down meaningfully from its previous guidance of between $180 million and $190 million. The company’s CEO, Chris Bayliss, said: “While today’s update is partly a result of the macro environment, it is nevertheless disappointing.”

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is down almost 12% to 83.5 cents. The gold industry is a sea of red on Thursday following another pullback in the gold price. This has seen the S&P/ASX All Ords Gold Index drop 5% today. In other news, this morning, Minerals 260 released results from the ongoing drilling program at its 100% owned 4.5Moz Bullabulling Gold Project. It is possible that some investors were expecting stronger results than those that were released.

Santos Ltd (ASX: STO)

The Santos share price is down 3% to $7.03. Investors have been selling energy shares today following another pullback in oil prices overnight. Traders were selling oil after tankers continued to pass through the Strait of Hormuz. The S&P/ASX 200 Energy Index is down 2.5% this afternoon.

Worley Ltd (ASX: WOR)

The Worley share price is down almost 9% to $11.20. This morning, this professional services company revealed that the Middle East conflict has continued to impact its earnings. Worley now estimates the impact to FY 2026 underlying EBITA to be up to $60 million. This is up materially from its previous estimate of $30 million to $40 million. It explains: “The extended duration and ongoing impact of the Middle East conflict continues to cause disruption to the progress of existing projects. While there have been no project cancellations, customers continue to delay the commencement and award of new projects.”

The post Why Judo Capital, Minerals 260, Santos, and Worley shares are dropping today appeared first on The Motley Fool Australia.

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• Worley flags FY26 earnings hit from Middle East delays and currency impact
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Mineral Resources Ltd (ASX: MIN), A2 Milk Co Ltd (ASX: A2M), and Pro Medicus Ltd (ASX: PME) shares are turning heads today.

As we head into the Thursday lunch hour, two of the ASX 200 heavyweights are charging ahead of the 0.2% losses posted by the S&P/ASX 200 Index (ASX: XJO) at this time, while one is trailing that performance.

Here’s what’s grabbing ASX investor interest on Thursday.

Pro Medicus shares leap on AI news

Pro Medicus shares are up 2.5% at the time of writing, swapping hands for $183.40 each.

This outperformance follows an announcement from the ASX 200 health imaging company on how it is expanding its AI-driven cardiology solutions.

In the latest move, Pro Medicus has signed binding heads of agreement with AI and medical technology company Echo IQ Ltd (ASX: EIQ).

The deal would see Pro Medicus take an initial $10 million stake in Echo IQ. A further $10 million investment is contingent on Echo securing US FDA approval for its EchoSolv HF product.

Commenting on the deal that’s helping boost Pro Medicus shares today, CEO Sam Hupert said:

In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ’s technology.

This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and third party algorithms such as Echo-IQ.

A2 Milk shares surge on NZ$300 million special dividend

A2 Milk shares are also catching investor attention today, and outperforming, after the board declared a NZ$300 million fully-franked special dividend.

The welcome passive income boost follows the recent Chinese approval to transition product registrations to A2 Milk-branded infant formula.

And it sees shares in the infant formula company up 4.1% today, trading for $7.13 each.

Breaking that NZ$300 million dividend payout down, it equates to 41.36 New Zealand cents per share (33.90 Aussie cents at current exchange rates).

If you want to bag the special A2 Milk dividend, you’ll need to own shares by market close on 7 July. A2 Milk shares trade ex-dividend on 8 July.

Commenting on the special dividend payout boosting A2 Milk shares today, chair Pip Greenwood, said:

With the necessary China regulatory approvals now in place, the board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management.

Which brings us to…

Mineral Resources shares sink on mine closure

Joining A2 Milk and Pro Medicus shares in grabbing headlines today is lithium miner and diversified resources producer Mineral Resources.

However, Mineral Resources shares are underperforming today, down 2.9% at $63.93 apiece.

This comes amid news that the ASX 200 mining stock is placing its Western Australia-based Lucky Bay Garnet Project into care and maintenance at the end of the month.

Mineral Resource noted:

The mine’s financial performance has been materially impacted by ongoing conflict in the Middle East, a region representing a significant proportion of Lucky Bay’s sales.

Combined with materially higher diesel and shipping costs, a strategic review of Lucky Bay has determined it is in the best interests of the company and its shareholders to cease operations and transition the project into care and maintenance, effective 1 July 2026.

The post Why is everyone talking about Mineral Resources, A2 Milk and Pro Medicus shares on Thursday? appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today
• Up 218% in a year, Mineral Resources shares sinking today amid mine closure news
• A deal with Pro Medicus has turned this ASX biotech into a 10-bagger, up more than 30% today
• A2 Milk shares jump amid $300 million special dividend
• Pro Medicus shares jump again as AI deal adds fuel to 40% rally

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Worley Ltd (ASX: WOR) shares are tumbling on Thursday after the engineering services group released a disappointing update.

At the time of writing, the Worley share price is down a sizeable 9.13% to $11.15. By comparison, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.38% to 8,775 points.

That leaves the ASX industrial stock down around 11% over the past month and 15% lower than this time last year.

The latest update clearly hasn’t landed well with investors, with the company pointing to a larger-than-expected hit to FY26 earnings.

Let’s take a closer look at what was announced.

Worley warns on earnings

According to the release, Worley now expects the adverse impact on FY26 underlying EBITA to be up to $60 million.

Back in April, the company thought the impact would be closer to $30 million to $40 million.

Worley said the extended duration and ongoing impact of the Middle East conflict continue to disrupt the progress of existing projects.

No projects have been cancelled, which is at least some good news. But customers are still pushing back the start of new work and delaying project awards.

Worley noted that recent developments in the region have been positive, including talks around ending the conflict and reopening the Strait of Hormuz.

However, the uncertainty around contract timing still appears to be making investors nervous today.

Currency adds another headwind

In addition to the disappointing update, Worley said the stronger Australian dollar in the second half of FY26 is expected to create another headwind.

Management estimates this will have an impact of about $50 million on FY26 reported underlying EBITA.

That adds another challenge at a time when the company is already dealing with project delays in the Middle East.

For context, Worley reported FY25 underlying EBITA of $823 million.

Full-year result now in focus

The next big test will be Worley’s full-year result on 26 August.

Even after today’s fall, Worley still has a market capitalisation of around $5.9 billion.

That’s not a small business, but the latest update has clearly taken the shine off it.

The result should give the market a better look at how much work has simply been pushed back, and whether margins are being squeezed as well.

Investors will also be watching for any signs that customer activity is starting to improve in the affected regions.

Until then, the stock could remain under close watch. I’d be inclined to sit on the sidelines for now.

The post Worley shares crash 9% as Middle East earnings hit gets worse appeared first on The Motley Fool Australia.

More reading

• Worley flags FY26 earnings hit from Middle East delays and currency impact
• Bell Potter names the best ASX 200 shares to buy in June

Motley Fool contributor Aaron Teboneras 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.