Why DroneShield, Guzman Y Gomez, Johns Lyng, and Zip shares are sinking today

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and slipped into the red. At the time of writing, the benchmark index is down 0.15% to 8,072.8 points.

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

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down almost 9% to $1.16. This follows the release of the counter drone technology company's half year results. DroneShield posted a 110% increase in revenue to $24.1 million but a net loss of $4.8 million. This is up from a loss of $2.9 million a year earlier. Nevertheless, DroneShield ended the period with a cash balance of $230 million and a $32 million contracted order backlog. It also has a sales pipeline valued at $1.1 billion, which is expected to drive further sales growth in the second half.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down 3% to $34.71. Investors have been hitting the sell button today after the quick service restaurant operator released its full year results. Although Guzman Y Gomez delivered a result ahead of its prospectus forecasts, it seems that the market was pricing in even stronger growth. The company reported a 32.1% increase in revenue to $342.2 million and a 52.9% lift in pro forma EBITDA to $44.8 million.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is down 26% to $4.13. Investors have been rushing to the exits after the insurance building and restoration services company released a very disappointing full year result. Johns Lyng reported a 9.6% decline in revenue to $1.16 billion and an 8.5% lift in EBITDA to $129.6 million. This fell short of its guidance for revenue of $1.2 billion and EBITDA of $136.4 million. Unfortunately, management is forecasting declines in revenue and EBITDA in FY 2025.

Zip Co Ltd (ASX: ZIP)

The Zip Co share price is down 9% to $2.06. This follows the release of the buy now pay later provider's full year results this morning. Zip posted a 28.2% increase in revenue to $868 million and a sizeable 243.2% increase in cash earnings before tax, depreciation and amortisation (EBTDA) to $69 million. However, it seems that the market was expecting even stronger growth from the company. Especially given that its shares are up over 500% since this time last year even after today's decline.

The post Why DroneShield, Guzman Y Gomez, Johns Lyng, and Zip 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 DroneShield, Johns Lyng Group, and Zip Co. The Motley Fool Australia has recommended Johns Lyng Group. 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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