The Top 4 Stocks Getting Hammered by Earnings

By Chris Lange Updated Jan 13, 4:58AM EST · Published Aug 3, 12:35PM EDT

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The Top 4 Stocks Getting Hammered by Earnings — © Thinkstock

The broad markets turned themselves around on Wednesday after posting a few consecutive losses. Despite this overall positive sentiment in the markets, a few companies were holding this move back. Specifically four companies that reported earnings before Wednesday’s session were absolutely hammered by those results. Now for some of these, the results are more or less in line, but the outlook is what truly dragged the stock down.

24/7 Wall St. has included some of the main highlights from each report, as well as a recent trading history, consensus target and 52-week trading range.

Rubicon Project

After the markets closed on Tuesday, Rubicon Project Inc. (NYSE: RUBI) reported its second-quarter financial results. The company said that it had $70.5 million in revenue and $0.17 in earnings per share (EPS). In the same period of last year, it posted $53.0 million in revenue and $0.06 in EPS. The Thomson Reuters consensus estimates had called for $0.10 in EPS on $63.8 million in revenue.

However, the second-quarter results are not what sank Rubicon. It was guidance. The company expects that in the third quarter it will have EPS in the range of $0.07 to $0.09 on $64 million to $70 million in revenue. The consensus estimates are $0.12 in EPS on $70.1 million in revenue for the current quarter.

Shares of Rubicon were trading down about 32% at $9.31 on Wednesday, with a consensus analyst price target of $22.68 and a 52-week range of $9.00 to $20.37.

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Kate Spade

The most recent Kate Spade & Co. (NYSE: KATE) quarterly results were released after the markets closed on Tuesday. The fashion retailer reported $0.19 in EPS on $320 million in revenue, versus consensus estimates of $0.14 in EPS on $318.55 million in revenue. In the same period of last year, $0.08 in EPS on $272.7 million in revenue were posted.

Unfortunately these earnings were not enough to offset Kate Spade’s outlook for the full year. The company now expects to have EPS in the range of $0.63 to $0.70, on revenues between $1.37 billion and $1.4 billion. The consensus estimates are $0.78 in EPS on revenue of $1.41 billion for the full year.

Shares of Kate Spade were trading down 20% at $16.07. The consensus price target is $29.07, and the 52-week range is $15.10 to $26.46.

Crocs

On Wednesday, Crocs Inc. (NASDAQ: CROX) reported its second-quarter financial results before the markets opened. The company posted $0.13 in EPS on $323.83 million in revenue. The consensus estimates called for $0.16 in EPS on revenue of $347.75 million. In the same period of last year $0.31 in EPS on $345.67 million in revenue were reported.

Along with the weaker-than-expected earnings, Crocs issued guidance that did not help its case with investors. The company expects to have revenues in the range of $245 million to $255 million, and for revenues to be down low single digits compared to the year-end revenues from 2015. Consensus estimates call for revenues of $289.52 million in the third quarter and $1.14 billion for the full year.

Crocs’ shares were trading down about 22% at $8.61, within a 52-week range of $7.63 to $15.73. The consensus price target is $11.08.

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Cray

When Cray Inc. (NASDAQ: CRAY) released its most recent earnings report after the markets closed on Tuesday. it posted a net loss of $0.29 per share on $100.2 million in revenue. Consensus estimates called for a net loss of $0.25 per share on $100.23 million in revenue. The results also compare with the $0.30 in EPS and revenue of $186.16 million reported in the same period of last year.

Shares of Cray were last seen down about 29% at $22.33. The consensus price target is $40.00, and the 52-week range is $18.00 to $43.79.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.