4 Companies That Destroyed Shareholders Last Week

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The U.S. presidential election is now over and markets have seemingly recovered to just below their highs but there are still some laggards. 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. A fair amount of these losses were brought about by missed earnings and some from missed clinical trials.

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.

Hertz Global

Shares of Hertz Global Holdings Inc. (NYSE: HTZ) were cut in half on Tuesday after the company missed earnings in its most recent report. Hertz reported its third-quarter financial results late on Monday. Although earnings did not live up to expectations, what really hurt in this report was the guidance.

The company posted $1.58 in earnings per share (EPS) and $2.54 billion in revenue, compared with the consensus estimates from Thomson Reuters of $2.75 in EPS and revenue of $2.6 billion. The same period of last year reportedly had EPS of $0.49 and $2.98 billion in revenue.

In terms of the guidance for the full year, the company expects EPS in the range of $0.51 to $0.88 and adjusted EBITDA between $575 million and $625 million. The consensus estimates call for $2.94 in EPS and $8.98 billion in revenue for 2016. Essentially, the company is looking to post a sizable loss in the fourth quarter.

Shares dropped around 17 % last week, closing Friday at $28, with a consensus price target of $60.88 and a 52-week range of $6.95 to $53.14.

Anthera Pharmaceuticals

After the company gave an update on its late-stage Lupus clinical trial, Anthera Pharmaceuticals Inc. (NASDAQ: ANTH) shares lost roughly one-third of their value on Thursday. The company announced that the CHABLIS-SC1 clinical trial with blisibimod for the treatment of systemic lupus erythematosus failed to meet its primary endpoint.

Although 47% of patients in the blisibimod arm versus 42% of patients in the placebo arm achieved this endpoint, the difference was not statistically significant.

Over the past week, Anthera shares retreated almost 19%. The stock closed trading at $1.95 on Friday, with a consensus price target of $9.80 and a 52-week range of $1.72 to $6.08.

BioScrip

On Tuesday, BioScrip Inc. (NASDAQ: BIOS) reported third-quarter financial results before the markets opened. The company said that it had a net loss of $0.09 per share and $224.5 million in revenues. The consensus estimates from Thomson Reuters had called for a net loss of $0.05 per share and revenues of $223.26 million. The same period of last year reportedly EPS of had $0.04 and $247.22 million in revenues.

Net revenues saw a decrease year over year, partly as a result of lower than expected core sales volumes and partly as a result of anticipated revenue declines in connection with the ongoing shift in revenue mix to a greater percentage of core infusion revenue and less lower-margin chronic infusion revenue.

In terms of guidance, the company expects to have revenues in the range of $928 million to $934 million and EBITDA between $27 million and $29 million for the 2016 full year. Consensus estimates are a net loss of $0.27 per share and $940.89 million in revenues for 2016.

Over the past week, shares lost almost half their value to end the week at $1.36, with a consensus price target of $3.88 and a 52-week trading range of $1.15 to $3.43.

 

Arrowhead Pharmaceuticals

After Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) gave an update on its hepatitis B virus (HBV) treatment, shares plummeted early on Wednesday. Unfortunately, Arrowhead was notified verbally by the U.S. Food and Drug Administration (FDA) of its decision to place a clinical hold on Heparc-2004.

The study is on hold while the company provides responses to questions arising from a nonclinical toxicology study in non-human primates using EX1, the company’s liver-targeted, intravenously administered delivery vehicle. The FDA did not indicate the clinical hold was based on any human findings.

Arrowhead had not yet received written notice of the clinical hold from the FDA; however, based on verbal communications, the clinical hold was prompted by deaths at the highest dose of an ongoing non-human primate toxicology study. This study involves higher doses of EX1 than those used clinically in humans and higher than those used in the company’s previous animal toxicology studies. The cause of these animal deaths is unknown and under investigation.

Over the week, shares were down almost 28%. The stock closed Friday at $4.18, with a consensus price target of $10.92 and a 52-week trading range of $3.07 to $8.22.