The S&P/ASX 200 index is on course to start the week on a very positive note. In afternoon trade the benchmark index is up a sizeable 1.5% to 6,839.7 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower:
The Perenti Global Ltd (ASX: PRN) share price is down almost 19% to $1.70. The mining services company's shares have fallen heavily today after downgrading its underlying net profit after tax guidance for FY 2020. Perenti, formerly known as Ausdrill, has downgraded its underlying NPAT guidance from $140 million to between $115 million and $120 million. This follows the loss of a major equipment hire contract to Ghana Manganese Company.
The Redbubble Ltd (ASX: RBL) share price is down 2% to $1.01. Investors have been selling the ecommerce company's shares following the release of a trading update last week. Although Redbubble estimates that Group Marketplace Revenue for the second quarter to date is up 20% on the prior corresponding period, this is largely down to acquisitions. The Redbubble branded marketplace has underperformed the expectations of both management and the market. This has been blamed on an increase in price competition in Redbubble's market leading sticker position.
The Sigma Healthcare Ltd (ASX: SIG) share price has fallen 9.5% to 59.7 cents. The pharmacy chain operator and distributor's shares have come under pressure today after rival Australian Pharmaceutical Industries Ltd (ASX: API) sold off its shareholding in the company. Due to the break down of merger talks, Australian Pharmaceutical Industries decided to offload 137,264,592 shares at a reported price of 60 cents per share.
The Smartgroup Corporation Ltd (ASX: SIQ) share price has crashed 15% lower to $7.59. The salary packaging and fleet management company's shares are sinking lower after the release of a profit warning. Due to changes by its insurance underwriting partner, management warned that earnings from its sales of insurance products are expected to be impacted in FY 2020. It expects an after tax impact of $4 million.
