Wednesday didn't see a lot of movement from major benchmarks, but there was plenty going on for investors to watch. Big-name earnings releases pulled indexes in both directions, with market participants searching frantically for evidence on whether the broader U.S. and global economies can expand more quickly or will see further slowdowns in the near future. Some companies saw some disappointing performance in their businesses that sent their share prices lower. Beyond Meat (NASDAQ: BYND), Six Flags Entertainment (NYSE: SIX), and iRobot (NASDAQ: IRBT) were among the worst performers. Here's why they did so poorly.
Beyond Meat deals with competition
Shares of Beyond Meat dropped 8%, falling below the $100 for the first time in several months. Much of the plant-based food producer's stock gains have stemmed from the hope that its meat-alternative products would get traction in the marketplace, and that's definitely taken place. But in some ways, Beyond Meat has seen too much interest, and competing food companies including upstart Impossible Foods and highly experienced giants like Kellogg and Nestle have looked at products of their own in the plant-based food category. Shareholders will have to hope that Beyond Meat gives them good news in its earnings report on Oct. 28, or else there could be further losses in store for the stock.
Image source: Beyond Meat.
Six Flags rides the roller coaster down
Six Flags Entertainment saw its stock plunge more than 12% after the theme park operator reported its third-quarter financial results. Revenue for the period was pretty much flat from year-earlier levels, with attendance growth of 3% getting largely canceled out by a 1% drop in guest spending per visitor. Earnings were down year over year, further disappointing investors. Yet what many believe irked shareholders the most were comments from CEO Jim Reid-Anderson denying interest in making a major acquisition in the theme park space. For those hoping to benefit from the wave of consolidation that many other industries have seen, that bad news from Six Flags was hard to swallow along with lackluster results.
iRobot reduces its forecast
Finally, shares of iRobot fell 9%. The maker of the Roomba autonomous vacuum cleaner said that it wouldn't be able to pass on the cost of tariffs on imports to its customers, and cut its full-year revenue guidance to the lower end of its previous range. iRobot's third-quarter financial results included a 9% increase in sales powered largely by international demand, but some of that bump came from a major customer's order coming in a quarter earlier than anticipated. As long as tariffs remain in place, iRobot might continue to see pressure on its U.S. business, and that could hold back its growth for the key holiday season.
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