The broad markets are continuing to hit all-time highs as the market is shifting gears out of the earnings season. Despite all the positive sentiment in the market, quite a few companies still struggled. 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 some of the largest losses for the week. Companies hitting lows and creating huge shareholder hits when the market is hitting all-time highs are not exactly winning the hearts and minds of the investing community.
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.
On Tuesday, Myriad Genetics Inc. (NASDAQ: MYGN) reported its fiscal fourth-quarter results and shares promptly tanked. The company said that it had $0.36 in earnings per share (EPS) on $186.5 million in revenue. These were under estimates by about $2 million in sales and six cents on earnings.
Myriad’s miss was almost entirely attributable to lower than expected myRisk Hereditary Cancer Testing sales, which was due to pricing pressure and market share loss. The big part of the disappointment here is that the 2017 sales and earnings guidance were roughly 11% and 30%, respectively, short of consensus expectations. Gross margin declined 170 basis points (still at 78.5%) and operating margin was down about 400 basis points to 19%.
Over the past week, the stock dropped by 29%. Shares were trading at $21.54 on Friday’s close, with a consensus price target of $23.90 and a 52-week trading range of $19.10 to $46.24.
After markets closed Tuesday, SunPower Corp. (NASDAQ: SPWR) reported its second-quarter 2016 results. The solar panel maker reported an adjusted diluted net loss of $0.22 per share on adjusted revenue of $401.8 million. In the same period a year ago, SunPower reported earnings per share (EPS) of $0.18 on revenue of $376.71 million.
Second-quarter results also compare to the Thomson Reuters consensus estimates for a net loss per share of $0.24 and $345.08 million in revenue. The big news from SunPower on Tuesday was a restructuring that will include a workforce reduction of about 1,200 employees and charges totaling $30 million to $45 million.
The company said a “substantial” portion of the charges will be incurred in the third quarter and more than half the charges will be in cash. Operating expenses are expected to drop by about 10% following the layoffs.
Despite some big downgrades, a few analysts still see SunPower shining brightly.
Over the past week, SunPower shares dropped by 31%. The stock closed trading at $10.85 on Friday, with a consensus price target of $19.61 and a 52-week range of $10.05 to $31.10.
Cliffs Natural Resources
Cliffs Natural Resources (NYSE: CLF) announced the pricing of its secondary underwritten offering early last week. The company agreed to sell approximately 44.4 million common shares at a public offering price of $6.75 per share. This values the offering at nearly $300 million.