6 Companies That Destroyed Shareholders Last Week
Last week, the Dow Jones Industrial Average broke its six-day losing streak and S&P 500 hit a new record high. Despite all the positive sentiment in the market, quite a few companies still struggled. Some analysts are saying that this rally fundamentally is not justified, and they might be right. Even though the market made incredible gains, a few companies held it back from pushing even higher.
24/7 Wall Street has picked out a few companies posting the largest losses for the week. We have included a note on why the stock has lagged, as well as a recent trading history, consensus analyst price target and a 52-week trading range.
Shares of Keryx Biopharmaceuticals Inc. (NASDAQ: KERX) sank on Monday after the company announced that there will be an interruption in the supply of Auryxia (ferric citrate) tablets due to a production-related issue converting active pharmaceutical ingredient to finished drug product. Many investors are wondering whether this is a temporary dip or if the stock can bounce back. The company expects to make Auryxia available to patients when supply of Auryxia is back to adequate levels, which Keryx anticipates will be during the fourth quarter of 2016.
Over the past week, Keryx shares dropped by nearly 40%. The stock closed trading at $4.49 on Friday, with a consensus price target of $7.29 and a 52-week trading range of $2.80 to $7.80.
The most recent Kate Spade & Co. (NYSE: KATE) quarterly results were released after the markets closed on Tuesday. The fashion retailer reported $0.19 in earnings per share (EPS) on $320 million in revenue for the period, topping consensus estimates of $0.14 in EPS on revenue of $318.55 million. In the same period of last year, EPS of $0.08 and $272.7 million in revenue were posted. Unfortunately these results were not enough to offset Kate Spade’s outlook for the full year. The company now expects to have EPS in the range of $0.63 to $0.70, on revenues between $1.37 billion and $1.4 billion. The consensus estimates are $0.78 in EPS on revenue of $1.41 billion for the full year.
Kate Spade saw its stock drop by 19% last week, closing the week at $17.55, with a consensus price target of $23.40 and a 52-week range of $15.10 to $26.46.
After the markets closed on Tuesday, Rubicon Project Inc. (NYSE: RUBI) reported its second-quarter financial results. The company said that it had $70.5 million in revenue and $0.17 in EPS. In the same period of last year, it posted revenue of $53.0 million and $0.06 in EPS. The Thomson Reuters consensus estimates had called for EPS of $0.10 and $63.8 million in revenue. However, the second-quarter results are not what sank Rubicon. It was guidance. The company expects that in the third quarter it will have EPS in the range of $0.07 to $0.09 on $64 million to $70 million in revenue. The consensus estimates are $0.12 in EPS on $70.1 million in revenue for the current quarter.
Over the past week, the stock dropped by 32%. Shares were trading at $9.69 on Friday’s close, with a consensus price target of $16.79 and a 52-week range of $9.00 to $20.37.
When Cray Inc. (NASDAQ: CRAY) released its most recent earnings report after the markets closed on Tuesday, it posted a net loss of $0.29 per share on $100.2 million in revenue. Consensus estimates called for a net loss of $0.25 per share on $100.23 million in revenue. The results also compare with the $0.30 in EPS and revenue of $186.16 million reported in the same period of last year.
Over the past week, the stock retreated 32%. Shares were last trading at $21.43. The consensus price target is $33.25, and the 52-week range is $18.00 to $43.79.
Crocs Inc. (NASDAQ: CROX) reported its second-quarter financial results before the markets opened on Wednesday. The company posted $0.13 in EPS on $323.83 million in revenue, which fell short of the consensus estimates of $0.16 per share and $347.75 million. In the same period of last year, $0.31 in EPS and $345.67 million in revenue were reported. Along with the weaker-than-expected earnings, Crocs issued guidance that did not help its case with investors. The company expects to have revenues in the range of $245 million to $255 million, and for revenues to be down low-single digits compared to the year-end revenues from 2015. Consensus estimates call for revenues of $289.52 million in the third quarter and $1.14 billion for the full year.
Over the past week, shares of Crocs dropped by 26%. The stock closed most recently at $8.31, with a consensus price target of $10.00 and a 52-week range of $7.63 to $15.73.
On Thursday, FireEye Inc. (NASDAQ: FEYE) reported its second-quarter financial results after the markets closed. Although the company had a less-than-favorable quarter, management believes that FireEye is on the path to optimizing its cost structure. The company posted a net loss of $0.33 per share on $175 million in revenues for the quarter. Consensus estimates had called for a net loss of $0.39 per share on revenue of $181.7 million. In the same period of last year, FireEye posted a net loss of $0.41 per share on $147.2 million in revenue.
FireEye stock dropped by 16% last week, closing on Friday at $14.73, within a 52-week range of $11.35 to $44.92. The consensus price target is $21.26.