It’s been a turbulent Thursday for ASX shares.
Many reported financial results, with the market rewarding those who outperformed expectations.
Conversely, those that miss forecasts have seen their share prices punished.
Here are four ASX shares with big swings today.
1. Lovisa Holdings Ltd (ASX: LOV)
Jewellery retailer Lovisa lit up the room with its FY22 half-year results.
Revenue was up by 48%, profit by 70% and the interim dividend soared by 85%.
Subsequently, the Lovisa share price is up 12% today.
Sales have benefitted from a 36% increase in online penetration in addition to launching 42 new stores.
Like many ASX shares, the business noted higher labour costs and supply chain difficulties.
Fortunately, Lovisa has managed cost pressures better than most positioning it well to execute on its global expansion.
2. City Chic Collective Ltd (ASX: CCX)
City Chic leads ASX shares today for the biggest share price fall.
The City Chic share price was annihilated 33% this morning after the business cancelled its interim dividend.
Management opted to retain cash and instead invest in inventory, which doubled over the half.
While revenue increased by nearly 50%, City Chic’s earnings remained flat as it more than doubled spending on marketing.
Overall, it was a weak result for the retailer, which was only amplified by Lovisa’s record half.
3. Life360 Inc (ASX: 360)
Life360’s share price cratered 30% today after announcing its FY21 results.
Much of the report had been pre-released in January, but it was the hawkish commentary around FY22 that spooked ASX shares investors.
“I can say very clearly right now, our anticipation is that 2023 will have significantly reduced burn to 2022”
Costs are expected to ramp up as the business integrates two acquisitions and invests in overseas markets.
With the company remaining unprofitable for at least the foreseeable future, investors dumped shares mercilessly.
4. Nitro Software Ltd (ASX: NTO)
ASX tech shares have been smashed in recent months.
Similar to Life360, the Nitro share price was smashed by 15% in response to its FY21 report.
The business recorded revenue of US$50.7 million, an increase of 26% in the prior year.
Unfortunately, sales weren’t the only line item that increased. Its EBITDA ballooned to a loss of US$7.6 million, up from a US$2.4 million loss.
It’s set to get even worse for Nitro, with management expecting an EBITDA loss between US$18 million to US$21 million for FY22.
With just $48 million of cash on hand, Nitro might need another capital raising in 2022.
