5 Companies That Destroyed Shareholders Last Week
Both the Dow Jones Industrial Average and S&P 500 felt a huge downward push in the first two months of the New Year, but now it looks like they are on the road to recovery. Although stocks are beginning to make a comeback at this time, there are still those that are caught in the downturn slowing this recovery and punishing their shareholders.
We decided to pick out some companies that punished shareholders over the course of the past week. While these were not the five biggest absolute losers of the week, among the active stocks, these all issued or had news that 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.
Intrepid Potash Inc. (NYSE: IPI) led the bears early on Monday after it reported its most recent financial results. It had a net loss of $0.26 per share on $42.8 million in revenue, versus consensus estimates from Thomson Reuters of a net loss of $0.11 per share on revenue of $61.67 million. The company sold 89,000 tons of potash in the fourth quarter for a full-year total of 587,000 tons, which is down 36% from 2014. Average net realized sales price per ton in the fourth quarter was $277, a 20% decrease year over year, and was $339 for 2015, up slightly from full-year 2014. Last week, the stock dropped roughly 41%. Shares of Intrepid ended the week at $1.27, with a consensus price target of $2.84 and a 52-week trading range of $0.65 to $13.29.
Ocwen Financial Corp. (NYSE: OCN) has been under much scrutiny in the past year following its mortgage debacle. But now this company faces another obstacle in the form of its most recent earnings report. Its shares dropped tremendously over the course of the week, following the release of its earnings report on Monday. Ocwen said it had a net loss of $0.98 per share on $362.5 million in revenue. Consensus estimates called for a net loss of $0.34 per share. Over the past week, the stock dropped 61.5%. Ocwen shares closed at $2.38 on Friday, with a consensus price target of $4.00 and a 52-week range of $2.05 to $11.82.
Valeant Pharmaceuticals International Inc. (NYSE: VRX) makes the list of companies that destroyed shareholders again, based on continued negative momentum. CEO J. Michael Pearson has just returned from sick leave and some are arguing that he should not be back to begin with, considering the latter part of 2015. More reports are coming out about the company restating its earnings, as well as clearing the air in regards to its involvement with Philidor. The stock dropped 22% over the course of the week, and the shares ended the week at $61.31, within a 52-week range of $59.87 to $263.81. The consensus price target is $142.25.
Ciena Corp. (NYSE: CIEN) reported its fiscal first-quarter financial results before early Thursday and the stock quickly fell. The company said it had $0.12 in earnings per share (EPS) on $573.1 million in revenue. That compared to consensus estimates of $0.14 in EPS on revenue of $576.30 million. For the second quarter, company expects revenue in the range of $615 million to $645 million, adjusted gross margin in the mid-40s percentage range and adjusted operating expense of roughly $255 million. Consensus estimates for the fiscal second quarter call for EPS of $0.31 on $644.63 million in revenue. In the past week, the stock dropped 16.5%. The shares were changing hands at $17.28 as Friday’s session came to a close, within a 52-week range of $16.32 to $26.50. The consensus price target is $24.93.
H&R Block Inc. (NYSE: HRB) released its fiscal third-quarter earnings report after the markets closed on Thursday and investors were not pleased. The company posted a net loss of $0.34 per share on revenue of $474.5 million, compared to consensus estimates that called for a net loss of $0.26 per share on revenue of $504.9 million. In the same period of last year, it reported a net loss of $0.13 per share on $509 million in revenue. The decline in revenues was primarily due to lower client volumes in its U.S. assisted tax offices, the impact of the divestiture of H&R Block Bank and the impact of foreign currency exchange rate fluctuations. The decline in volume was offset by improved pricing and form mix in both assisted and DIY categories. Last week, the stock fell roughly 19%. Shares ended the week at $27.76, with a consensus analyst target of $40.33 and a 52-week range of $26.93 to $37.53.