Personal Finance

Why Stratasys, Dick's Sporting Goods, and Teva Pharmaceutical Slumped Today

Tuesday was another solid day for the stock market, with all major market benchmarks posting gains on the day. A rebound in some hard-hit areas of the market, including the energy sector and emerging-market stocks internationally, helped restore some confidence in the long-term prospects for stocks in the wake of the results of the presidential election. Nevertheless, some stocks missed out on the rally, and Stratasys (NASDAQ: SSYS) , Dick's Sporting Goods (NYSE: DKS) , and Teva Pharmaceutical (NYSE: TEVA) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.

Image source: Stratasys.

Stratasys investors expect uglier results ahead

Stratasys fell more than 12% after the company reported its third-quarter financial results and predicted tougher times for the rest of the fiscal year. Revenue was down more than 6% from the year-ago quarter, and Stratasys saw its adjusted net income fall to just $100,000. More alarmingly, the 3D printing company said that it now expects adjusted net income for the full fiscal year to be between $7 million and $11 million, working out to $0.13 to $0.21 per share in adjusted earnings. The midpoint of that earnings range is barely half what investors had expected to see, and sales guidance for $662 million to $673 million doesn't fit well with the bullish case for the stock going forward. To recover, Stratasys will have to demonstrate long-term success with its innovative products in the 3D printing industry, despite facing substantial competition in the space.

Dick's shareholders aren't looking forward to the holidays

Dick's Sporting Goods fell 7% in the wake of its giving weaker guidance than expected for its fiscal fourth quarter. The company's fiscal third-quarter report included stronger adjusted net income growth than Dick's had expected in its previous guidance, and consolidated same-store sales jumped more than 5%, easily eclipsing the 2% to 3% growth that it had expected to achieve. Yet investors were apparently unsatisfied with Dick's assessment of how the holiday quarter will go, even though company guidance for adjusted earnings of $2.99 to $3.11 per share seemed consistent with the $3.05 per share consensus forecast among investors. Still, with fourth-quarter earnings guidance of $1.19 to $1.31 per share falling short of the expected $1.32 figure, some investors weren't satisfied with what amounted to a net wash for the full fiscal year. Dick's will therefore have to exceed expectations again in order to defy pessimistic investors.

Teva gives a mixed performance

Finally, Teva Pharmaceutical fell 8%. The maker of generic and brand-name pharmaceuticals reported third-quarter revenue figures that were less than what most investors had expected, and even though earnings were largely consistent with expectations, Teva relied largely on acquisitions in order to generate growth. Poor conditions in the U.S. outweighed strength in Europe, and the company's guidance for the fourth quarter wasn't as strong as some had hoped. Specifically, guidance for adjusted earnings of $1.34 to $1.44 per share was weaker than the $1.42 per share consensus forecast, and investors' projections for $6.48 billion in sales would be toward the very top of the $6.2 billion to $6.5 billion guidance range Teva gave. Going forward, Teva has to hope that conditions in the U.S. market improve in order to help spur greater long-term growth in the future.

Forget the 2016 Election: 10 stocks we like better than Teva Pharmaceutical Industries

Donald Trump was just elected president, and volatility is up. But here's why you should ignore the election:

Investing geniuses Tom and David Gardner have spent a long time beating the market no matter who's in the White House. In fact, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Teva Pharmaceutical Industries wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as ofNovember 7, 2016

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Stratasys and Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Personal Finance Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More