America’s Most and Least Successful Companies in 2016

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illumina-logo
Source: YouTube

9. Illumina Inc (Nasdaq: ILMN)
> YTD stock price change: -33.8%
> Latest FY revenue: $2.22 billion
> Forecasted FY revenue: $2.65 billion
> Sector: Health care

Biotech company Illumina develops products for genetic researchers. After dropping sharply in the middle of April 2016 on weak quarterly earnings, the price of Illumina shares rose steadily until October. On a single day that month the company’s share price tanked from nearly $185 to less than $140 on news of market saturation and declining revenue from the company’s gene sequencing device business. Though the company’s third quarter revenue was up 10% over the previous year’s quarter, it fell about $18 million short of projections. Perhaps even more detrimental to shareholder confidence, the company announced at the same time it expected fourth quarter revenue to remain flat.

Illumina has not recovered on Wall Street since the major October setback. It remains one of only a handful of stocks on the S&P index to lose over a third of its value in 2016.

stericycle-logo
Source: stericycle.com

8. Stericycle (NASDAQ: SRCL)
> YTD stock price change: -35.7%
> Latest FY revenue: $2.99 billion
> Forecasted FY revenue: $3.60 billion
> Sector: Industrials

Stericycle manages waste for companies and health care institutions disposing of hazardous and confidential materials. Though the company was born as a result of the U.S. Medical Waste Tracking Act, it now operates in 22 countries. Breaking $1 billion in revenue in 2008, the company was added to the S&P 500 index the same year. This past year, however, it was among the worst perfoming on the index. The company’s share price dropped precipitously after the company reported first quarter earnings that fell short of analyst estimates. The company also reduced its estimates for future earnings, which likely further eroded shareholder confidence.

allergan-logo
Source: allergan.com

7. Allergan (NYSE: AGN)
> YTD stock price change: -38.5%
> Latest FY revenue: $15.07 billion
> Forecasted FY revenue: $15.28 billion
> Sector: Health care

Dublin-based pharmaceutical giant Allergan develops and manufactures dozens of medications designed to treat a range of ailments, from eye conditions to various infectious diseases. This year marked a departure from a pattern of years of success on Wall Street.

Year to date, the company’s share price has fallen by 38.5%, more than all but a handful of other companies on the S&P 500 index. Many investors likely dumped the company not because of any specific failure but rather because an anticipated development did not happen. Allergan was expected to merge with Pfizer, the biggest drugmaker in the United States. The merger would have saved the combined company an estimated $1 billion annually in U.S. taxes. The deal was called off days after the U.S. Treasury Department imposed new restrictions on corporate attempts to reduce tax burdens. On news of the federal government initiative and its implications for the merger, Allergan share prices fell precipitously and have yet to recover.