Why AGL, Breville, CBA, & Telstra shares are dropping lower today

Commonwealth Bank of Australia (ASX:CBA) and Telstra Corporation Ltd (ASX:TLS) shares are two of four dropping lower today…

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is dropping lower. At the time of writing the benchmark index is down 0.6% to 6,096.2 points.

Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:

The AGL Energy Limited (ASX: AGL) share price has crashed 9.5% lower to $15.35. This follows the release of the energy company's full year results. AGL Energy reported an underlying profit after tax of $816 million. This was a 22% decline on the prior corresponding period but within its guidance range. It appears to be its guidance that has spooked investors. It expects underlying profit after tax of $560 million and $660 million in FY 2021.

The Breville Group Ltd (ASX: BRG) share price has dropped 5.5% to $25.77. This morning the appliance manufacturer released its full year results. Breville delivered a 25.3% increase in revenue and an 11.2% increase in normalised net profit after tax to $75 million. Investors may have been expecting an even stronger result.

The Commonwealth Bank of Australia (ASX: CBA) share price is down 2.5% to $72.35. This appears to have been driven by a broker note out of Morgan Stanley this morning. The broker still has concerns over the bank's credit quality and suspects that dividend restrictions could remain in place in 2021. As a result, it has held firm with its underweight rating and cut its price target to $62.00.

The Telstra Corporation Ltd (ASX: TLS) share price has fallen almost 6% to $3.19 following the release of its full year results. Investors have been selling Telstra's shares despite it achieving its guidance and maintaining its 16 cents per share dividend in FY 2020. This selling may be due to concerns over the pandemic's impact on its performance in FY 2021. Management expects a negative COVID-19 impact of $400 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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.

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