Investing

8 Companies That Destroyed Shareholders This Week

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24/7 Wall Street has picked out a few companies posting some of the largest losses for the past week. Some companies are hitting lows and creating huge shareholder losses. Most of these losses were brought about by missed earnings coupled with a generally negative market sentiment. As we know, the S&P 500 is currently on its longest slide since 2011. This drop in the broad markets definitely has some ties to the election, but it has been helped even more with these missed earnings.

We have included a little color on why each stock has lagged, as well as a recent trading history, consensus analyst price target and a 52-week trading range.

Achillion Pharmaceuticals

Achillion Pharmaceuticals Inc. (NASDAQ: ACHN) might have disappointed some investors on its drug development updates, but earnings did not help either. Leerink has warned about questions being raised by liver enzyme elevations in its ongoing MAD Study and being unable to get more information from the company. Things are substantially worse than in early 2015, when Achillion was going to be a potential key biotech.

When Achillion reported its third-quarter financial results early Thursday, it posted a net loss of $0.15 per share with no revenues for the quarter. Consensus estimates from Thomson Reuters had called for a net loss of $0.16 per share, with no revenue estimate. Last year, Achillion actually posted a profit during this quarter, $0.19 in earnings per share (EPS), and $33.82 million in revenue.

The stock closed the past week down 32% at $4.36. It has a Thomson Reuters consensus analyst price target of $10.39 and a 52-week trading range of $3.78 to $10.95.

Diplomat Pharmacy

Diplomat Pharmacy Inc. (NYSE: DPLO) was one of the worst performing stocks in Thursday’s session. Its third-quarter earnings reported cratered shares. The company said that it had $0.21 in earnings per share (EPS) and $1.18 billion in revenue. The consensus forecast had called for $0.24 in EPS and revenue of $1.26 billion. In the same period of last year, it posted EPS of $0.26 on $946.91 million in revenue.

A couple of the highlights from the report: revenues grew organically by 12% and the company issued 266,000 prescriptions, up 9% year over year. Gross profit per prescription dispensed was $289, compared to $301 last year.

Shares dropped by 45% last week, closing the week at $12.50, with a consensus price target of $22.18 and a 52-week range of $12.47 to $38.94.

Facebook

Despite solid numbers when Facebook Inc. (NASDAQ: FB) reported its third-quarter financial results on Wednesday, and an initial gain solely based on the numbers, the conference call is what brought down this giant. During the call, CFO David Wehner warned that ad revenue growth could slow “meaningfully” in 2017. As a result, investors turned tail and fled the stock. But conceivably, if these remarks were taken too seriously, this could provide a nice buying opportunity.

The company had $1.09 in EPS and $7.01 billion in revenue, while the consensus estimates called for $0.97 per share and revenue of $6.92 billion. The same period of last year had $0.57 in EPS and $4.5 billion in revenue.

During the quarter, daily active users (DAUs) totaled 1.18 billion on average for September 2016, an increase of 17% year over year. Mobile DAUs were 1.09 billion on average for September 2016, an increase of 22%. Monthly active users (MAUs) came out at 1.79 billion at the end of the quarter, an increase of 16% from the same period last year. Mobile MAUs were 1.66 billion, an increase of 20%.

Over the past week, Facebook shares dropped by nearly 8%. Although this might not seem like much comparatively to these other stocks on a percentage basis, in terms of market cap Facebook lost $ billion over the course of this week. The stock closed trading at $120.76 on Friday, with a consensus price target of $156.26 and a 52-week range of $89.37 to $133.50.

First Solar

Though First Solar Inc. (NASDAQ: FSLR) has been a leader among U.S. solar outfits, solar has fallen very much out of favor, and the fate of post-2016 subsidies remains up in the air. Shares got demolished on Thursday after the company reported its third-quarter results. The company actually had a strong quarter on the bottom line, with $1.22 in EPS, versus the consensus estimate of $0.74. However, revenues failed to live up to expectations, coming in at $688 million instead of the $988 million forecast.

Over the past week shares dropped about 20% to close out the week at $32.48, with a consensus price target of $47.91 and a 52-week trading range of $32.41 to $74.29.

Fitbit

Shares of Fitbit Inc. (NYSE: FIT) lost about a third of their value on Thursday after the company reported its third-quarter earnings after the close on Wednesday. Essentially, the company posted $0.19 in EPS and $503.8 million in revenue. However consensus estimates called for EPS of $0.17 and $506.9 million in revenue. Despite the earnings beat, investors are concerned that Fitbit might not be growing fast enough to compete with its larger wearables competitors like Apple or even Nike.

The company is truly proving to be a one-hit wonder. It has great products and is building a solid ecosystem, but the strategy for continued growth ahead feels more than just muted. It has seen many post-earnings analyst downgrades.

Over the past week, Fitbit shares retreated 35%. They were last trading at $8.71. The consensus price target is $13.35, and the 52-week range is $8.37 to $38.15.

GoPro

Ahead of earnings, GoPro Inc. (NASDAQ: GPRO) was already down 7%, but the story only got worse after the company reported. In fact at that time, GoPro shares were halted for the news and now shareholders know why.

GoPro posted a net loss of $0.60 per share, and revenue came in at $240.57 million. That compares to the earnings of $0.25 per share from a year ago, and revenues were down a sharp 29.9%. The consensus estimates called for a net loss of $0.36 per share and $316 million in revenues.

Fourth-quarter guidance was offered at $625 million (plus or minus $25 million) and the company’s adjusted earnings guidance was $0.30 per share, plus or minus five cents. The consensus estimates were $0.46 EPS and $675.5 million in revenues.

Over the previous week, shares were down 16%. The stock closed Friday at $11.12, with a consensus price target of $13.92 and a 52-week trading range of $8.62 to $26.12.

Lumber Liquidators

The third-quarter financial results for Lumber Liquidators Holdings Inc. (NYSE: LL) were reported before the markets opened on Monday. The company posted a net loss of $0.21 per share and $244.1 million in revenue. Consensus estimates had called for a net loss of $0.19 per share and $231.57 million in revenue. In the same period of last year, the company posted a net loss of $0.31 per share and revenue of $236.06 million.

Comparable store net sales increase of 1.0%, reflecting a 0.5% increase in customers invoiced in comparable stores. Non-comparable store net sales increased $5.6 million from in the prior-year period.

Over the past week, the stock dropped by more than 15%. Shares were trading at $15.31 on Friday’s close, with a consensus price target of $13.81 and a 52-week range of $10.01 to $20.10.

PTC Therapeutics

Late on Wednesday, PTC Therapeutics Inc. (NASDAQ: PTCT) reported its third-quarter financial results. Just a couple weeks ago PTC made the list of destroyed stocks after the company reported that it received a denial from the U.S. Food and Drug Administration (FDA). However, this week it is earnings related.

The company posted a net loss of $1.03 per share and revenues of $23 million, versus consensus estimates of a net loss of $1.21 per share and $19.7 million in revenues.

These numbers look good at first glance but guidance was not as favorable. The company expects to have net sales in the middle of its guidance of $65 million to $85 million for Translarna, a treatment aimed at nonsense mutation Duchenne muscular dystrophy. It is worth pointing out that the company also reported that for the last nine months, ended September 2016, Translarna sales totaled $56.3 million. So for the remainder of 2016, the company is only looking to post revenues of roughly $19 million, whereas the consensus estimate called for about 20% more at $25.55 million.

Over the past week, PTC shares retreated 22%. They ended the week at $5.00. The consensus price target is $11.63, and the 52-week range is $4.03 to $35.40.

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