4 Companies That Destroyed Shareholders Last Week
So far 2016 has been a rocky year for everyone, and many investors are looking for cover, whether it’s from oil or other global markets. Both the Dow Jones Industrial Average and S&P 500 have felt a huge impact, even though it has only been about a month into the new year. If the adage proves to be true, “As goes January so goes the year,” in terms of market performance, investors might be in trouble.
We decided to pick out some companies that destroyed shareholders over the course of the past week. While these were not the four biggest absolute losers of the week, of the active stocks, these all issued or had news that took place and pushed shares down. 24/7 Wall St. has included their recent trading history, as well as the 52-week trading range and the consensus analyst price target.
After markets closed Tuesday, SolarCity Corp. (NASDAQ: SCTY) reported fourth-quarter and full-year 2015 results. For the quarter, the solar PV installer posted an adjusted diluted net loss per share of $2.42 on revenues of $115.48 million. In the same period a year ago, the company reported a net loss per share of $1.33 on revenues of $71.81 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for a loss per share of $2.59 on revenues of $105.62 million.
SolarCity projected operating expenses of $230 million to $240 million and an adjusted loss per share of between $2.55 and $2.65. Analysts had estimated a net loss of $2.36 per share. Another drag on the shares is the company’s estimated decline of 34% in first-quarter installations, which it describes as “a higher-than-usual seasonal slowdown.”
Over the course of the week, the stock dropped roughly 40%. Shares of SolarCity were trading at $17.38 at the end of Friday’s session, with a consensus analyst price target of $48.78 and a 52-week trading range of $16.90 to $63.79.
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Monster Worldwide Inc. (NYSE: MWW) reported its fourth-quarter financial results on Thursday, and the shareholders paid for it. The company had $0.11 in EPS on $159 million in revenue, compared to consensus estimates of $0.10 in EPS on revenue of $167 million. However guidance did not come close. Monster expects to have EPS in the range of $0.06 to $0.10 for the first quarter, versus the consensus estimate of $0.12.
The stock dropped nearly 37% over the course of the week. Monster shares were trading at $2.82 on Friday’s close, with a consensus price target of $7.19 and a 52-week range of $2.43 to $8.23.
Mylan N.V. (NASDAQ: MYL) announced that it will buy Sweden’s Media AB for the price of $7.2 billion in a cash and stock deal. The objective of this acquisition is to help Mylan move in to new markets. Media reports that roughly 60% of its sales come from the sale of prescription drugs. Mylan valued this deal at $9.9 billion, including Media’s debt.
Over the past week, the stock dropped 19%. Mylan shares closed at $41.83 on Friday, with a consensus price target of $62.38 and a 52-week range of $37.59 to $76.69.
After the markets closed on Thursday, LPL Financial Holdings Inc. (NASDAQ: LPLA) reported its fourth-quarter financial results. The company had $0.37 in EPS on $1.02 billion in revenue, which compares to consensus estimates of $0.51 in EPS. Transaction and fee revenues were $97 million, a decrease of 8% sequentially, primarily due to the timing of conferences, as well as slightly lower trading volumes. The company expects continued pressure on its brokerage sales going through 2016.
Last week, the stock dropped 40%. The shares were changing hands at $16.50 as Friday’s session came to a close, within a 52-week range of $15.38 to $48.18. The consensus price target is $37.71.