8 Companies That Destroyed Shareholders This Week
24/7 Wall Street has picked out a few companies posting some of the largest losses for the past week. Some companies are hitting lows and creating huge shareholder losses. Most of these losses were brought about by missed earnings coupled with a generally negative market sentiment. As we know, the S&P 500 is currently on its longest slide since 2011. This drop in the broad markets definitely has some ties to the election, but it has been helped even more with these missed earnings.
We have included a little color on why each stock has lagged, as well as a recent trading history, consensus analyst price target and a 52-week trading range.
Achillion Pharmaceuticals Inc. (NASDAQ: ACHN) might have disappointed some investors on its drug development updates, but earnings did not help either. Leerink has warned about questions being raised by liver enzyme elevations in its ongoing MAD Study and being unable to get more information from the company. Things are substantially worse than in early 2015, when Achillion was going to be a potential key biotech.
When Achillion reported its third-quarter financial results early Thursday, it posted a net loss of $0.15 per share with no revenues for the quarter. Consensus estimates from Thomson Reuters had called for a net loss of $0.16 per share, with no revenue estimate. Last year, Achillion actually posted a profit during this quarter, $0.19 in earnings per share (EPS), and $33.82 million in revenue.
The stock closed the past week down 32% at $4.36. It has a Thomson Reuters consensus analyst price target of $10.39 and a 52-week trading range of $3.78 to $10.95.
Diplomat Pharmacy Inc. (NYSE: DPLO) was one of the worst performing stocks in Thursday’s session. Its third-quarter earnings reported cratered shares. The company said that it had $0.21 in earnings per share (EPS) and $1.18 billion in revenue. The consensus forecast had called for $0.24 in EPS and revenue of $1.26 billion. In the same period of last year, it posted EPS of $0.26 on $946.91 million in revenue.
A couple of the highlights from the report: revenues grew organically by 12% and the company issued 266,000 prescriptions, up 9% year over year. Gross profit per prescription dispensed was $289, compared to $301 last year.
Shares dropped by 45% last week, closing the week at $12.50, with a consensus price target of $22.18 and a 52-week range of $12.47 to $38.94.
Despite solid numbers when Facebook Inc. (NASDAQ: FB) reported its third-quarter financial results on Wednesday, and an initial gain solely based on the numbers, the conference call is what brought down this giant. During the call, CFO David Wehner warned that ad revenue growth could slow “meaningfully” in 2017. As a result, investors turned tail and fled the stock. But conceivably, if these remarks were taken too seriously, this could provide a nice buying opportunity.
The company had $1.09 in EPS and $7.01 billion in revenue, while the consensus estimates called for $0.97 per share and revenue of $6.92 billion. The same period of last year had $0.57 in EPS and $4.5 billion in revenue.
During the quarter, daily active users (DAUs) totaled 1.18 billion on average for September 2016, an increase of 17% year over year. Mobile DAUs were 1.09 billion on average for September 2016, an increase of 22%. Monthly active users (MAUs) came out at 1.79 billion at the end of the quarter, an increase of 16% from the same period last year. Mobile MAUs were 1.66 billion, an increase of 20%.
Over the past week, Facebook shares dropped by nearly 8%. Although this might not seem like much comparatively to these other stocks on a percentage basis, in terms of market cap Facebook lost $ billion over the course of this week. The stock closed trading at $120.76 on Friday, with a consensus price target of $156.26 and a 52-week range of $89.37 to $133.50.