WPP (LSE: WPP) and ASOS (LSE: ASC) both disappoint.
The FTSE 100 (UKX) is perking back up a bit today, gaining 15 points to 5,819 points after it was revealed that the UK economy is officially out of recession. Apparently, we enjoyed a 1% growth in the three months to September, buoyed by the Olympics.
But it's not all roses for some constituents of the FTSE indices. We take a quick look at three shares that are falling today...
WPP
Footsie advertising giant WPP Group (LSE: WPP) fell 23p (3.8%) to 785p after cutting this year's revenue growth outlook. The lowering of expectations from 3% growth to 2.5% growth follows a previous reduction from 3.5% in August.
Since then the shares, which had peaked at 884p, have slipped back. Forecasts prior to today put them on a forward price-to-earnings (P/E) ratio of 11 with a 3.3% dividend expected, so they don't look obviously overvalued.
ASOS
Online fashion retailer ASOS (LSE: ASC) fell 183p (7.3%) today after releasing results for the five months to 31 August, reversing a pre-announcement mini-surge. Although group revenues are up 32% to £238m and international sales rose by 46%, the City was clearly disappointed by the news that buying director Caren Downie is to leave the company.
Forecasts for next year suggest a trebling of earnings per share, but put those shares on a P/E of 48. Is there enough future growth through international expansion to justify such a high rating?
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Victoria
AIM-listed Victoria Oil & Gas (LSE: VOG) fell on full-year results, dropping 2.8% to 2.4p. Although estimates of reserves at Victoria's Logbaba operation in Cameroon upped by 50% and production there commenced in July, the firm's losses for the year widened from $4.7m to $7.7m.
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> Alan does not own any shares mentioned in this article.
