Why A2 Milk, Ampol, PWR, and Reece shares are sinking today

The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. In afternoon trade, the benchmark index is up 0.2% to 7,986.8 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 18% to $5.73. Investors have been selling this infant formula company's shares following the release of its full year results. Although A2 Milk delivered solid top and bottom line growth, it still appears to have fallen a touch short of expectations. In addition, its guidance for mid-single digit growth may have disappointed investors. Especially given that its shares were trading at a significant premium. The market had been forecasting 9% revenue growth in FY 2025.

Ampol Ltd (ASX: ALD)

The Ampol share price is down 4% to $30.82. This morning, this fuel retailer released its half year results and revealed a 1.1% decline in revenue to $18,243.7 million but a 197.3% jump in statutory profit to $235.2 million. However, it is worth noting that the prior corresponding period included a $220.1 million inventory loss. A true representation of its performance is arguably its group replacement cost operating profit (RCOP). It was down 29% over the prior corresponding period to $233.7 million. In light of this, the Ampol board was forced to cut its interim dividend by 33% to 60 cents per share.

PWR Holdings Ltd (ASX: PWH)

The PWR Holdings share price is down 5% to $9.37. This automotive cooling products provider's shares have come under pressure since the release of its full year results. PWR delivered a record profit of $24.8 million for the 12 months ended 30 June. However, it was still short of expectations. Bell Potter was forecasting a net profit after tax of $26.8 million. In addition, management has warned that its margins will be impacted by further investments. Whereas Bell Potter was forecasting margin expansion.

Reece Ltd (ASX: REH)

The Reece share price is down 4% to $26.02. This morning, this plumbing parts company released its full year results and revealed only modest sales and profit growth. Reece's sales revenue increased 3% to $9.11 billion and its adjusted net profit lifted 3% to $416 million. In addition, management's commentary for FY 2025 may have spooked investors. It warned that it "expect[s] FY 2025 to remain challenging."

The post Why A2 Milk, Ampol, PWR, and Reece shares are sinking today appeared first on The Motley Fool Australia.

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 PWR Holdings. The Motley Fool Australia has positions in and has recommended PWR Holdings. The Motley Fool Australia has recommended A2 Milk. 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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