Why Endeavour, Kelsian, NIB, and Perpetual shares are sinking today

These shares are starting the week in the red. But why?

| More on:
A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) is back on form and racing higher on Monday. In afternoon trade, the benchmark index is up 0.5% to 8,062.8 points.

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

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is down 7% to $5.14. Investors have been selling this drinks giant's shares following the release of its full year results. The company reported a 3.6% increase in group sales to $12.3 billion but a 3.2% decline in net profit after tax to $512 million. Analysts at Goldman Sachs were expecting a net profit after tax of $520 million. Despite the profit decline, the Endeavour board was able to maintain its dividend at 21.8 cents per share.

Kelsian Group Ltd (ASX: KLS)

The Kelsian share price is down almost 26% to $3.72. This has been driven by the release of a trading update from the travel and transport company this morning. Kelsian, formerly known as Sealink, advised that it expects to deliver a profit result ahead of consensus estimates in FY 2024. However, taking the shine off this was news that the company is planning to spend very big on capital expenditure. Management advised that capital expenditure in FY 2025 is expected to be between $180 million to $190 million. These funds will be put towards several strategic initiatives and investments.

NIB Holdings Limited (ASX: NHF)

The NIB share price is down 15.5% to $6.14. Investors have been rushing to the exits after the private health insurer released its full year results. NIB posted a 9.3% increase in revenue to $3.3 billion and a 77.3% jump in underlying operating profit to $257.5 million. While this may look strong on paper, it was well short of expectations. For example, Citi was forecasting underlying operating profit of $291 million and the consensus estimate was $271 million.

Perpetual Ltd (ASX: PPT)

The Perpetual share price is down 2.5% to $20.37. This morning, this fund manager announced that it is making a significant non-cash impairment. In response to net outflows, including in certain investment strategies managed by J O Hambro and TSW, Perpetual expects to recognise a non-cash impairment charge of approximately $547 million (pre-tax) in its financial results for the full year ended 30 June 2024. Perpetual has experienced net outflows of $8 billion for J O Hambro and $4 billion for TSW.

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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 positions in and has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a happy end to the trading week this Friday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA shares top $170. Where to now?

Another day, another record high for CBA shares.

Read more »

Two people jump and high five above a city skyline.
Share Gainers

Why these 5 ASX 200 stocks are racing higher this week

It’s been a stellar week for these five ASX 200 stocks. But why?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Appen, Aspen, Catalyst Metals, and Core Lithium shares are racing higher today

Let's see why these shares are roaring higher today and ending the week on a high.

Read more »