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4 Companies That Destroyed Shareholders This Past Week

In terms of guidance for the fiscal second quarter, the company expects comparable sales of flat to down 2% and EPS in the range of $1.00 to $1.20. The consensus estimates call for $1.36 in EPS on $16.68 billion in revenue for the quarter.

Last week, the stock fell over 6%. The stock closed at $68.66 on Friday. Its consensus price target is $78.64. The 52-week range is $65.50 to $85.81. Target even became the subject of likely class action suits this week in press releases from law firms after the report.

Brian Cornell, chairman and CEO of Target, said:

We are pleased with our first quarter financial results, which demonstrate the effectiveness of our strategy in an increasingly volatile consumer environment. First quarter comparable sales in Signature Categories grew more than three times the Company average, digital comparable sales grew 23 percent, and strong execution by our team delivered stronger-than-expected growth in Adjusted EPS. With an outstanding team, a resilient business model and a strong balance sheet, we plan to successfully implement our long-term strategy, even in the face of a challenging short-term consumer landscape.

Francesca’s

Early on Tuesday, shares of Francesca’s Holding Corp. (NASDAQ: FRAN) plunged after the company announced changes in management. Chairman, President and CEO Michael Barnes has resigned, effective immediately. So Francesca’s lead director, Richard Kunes, is taking on the role of interim chairman, president and chief executive of the company.

Judging by the shift that shares took, investors do not appear to be convinced of the company’s new direction. An immediate CEO departure is generally never good and could potentially signal further fallout within the company, but this has yet to be seen. The company also gave out some information ahead of earnings that might seem bearish as well.

24/7 Wall St. identified what this transition likely means for the company in coverage this week. Mr. Kunes said in the release:

We wish Mike the best in his future endeavors. During his tenure, Mike built a strong leadership team of highly accomplished and talented executives. The Board has the utmost confidence in the management team to execute the business plans for fiscal year 2016 and the initial strategies of Vision 2020, the Company’s long range plan. In addition, our Board members have diverse and talented backgrounds and will provide ongoing support and guidance to the management team.

Over the course of the week, the stock was down 29%. Shares ended Friday at $10.56. The consensus analyst target is $15.45, and the 52-week range is $10.05 to $19.90.

Allegheny Technologies

Following the announcement of its new debt offering, Allegheny Technologies Inc. (NYSE: ATI) made waves early on Wednesday. The company showed that it will be a $250 million convertible note raise and details were disclosed below.

ATI has agreed to sell $250.0 million aggregate principal amount of 4.75% Convertible Senior Notes due 2022, but note holders may convert their notes into shares of common stock. The conversion rate will initially be 69.2042 shares of common stock per $1,000 principal amount of notes, with an initial conversion price of approximately $14.45 per share. Allegheny’s press release gave the use of proceeds as follows:

ATI intends to use the net proceeds from the offering for general corporate purposes, which may include voluntary or required contributions to the company’s defined benefit pension trust or repurchases, repayment or refinancing of debt.

The stock was down about 21% last week, and shares ended Friday at $11.23. The consensus analyst target is $16.13, and the 52-week range is $7.08 to $34.59.