Last quarter was strong for most companies with the majority either matching, or even beating their estimates. Even so, some companies did not fare as well, with lower than expected earnings which in turn cost their shareholders dearly.
Chipotle Mexican Grill Inc.
The popular restaurant chain suffered a major downgrade on Friday, dragging its share price down for the ninth consecutive day. The future outlook is not looking positive either, as analysts are predicting it could easily lose another $160. This downturn is mostly caused by the closure of a number of restaurants due to an E. coli scare. During the week shares went down by almost 5%, closing at $612.40 on Friday. Despite this, the consensus 12 month target price is still $747.22, offering a glimmer of future hope.
Men’s Wearhouse Inc.
The men’s clothing retailer received an extremely negative reaction from investors after it reported poor preliminary results for third quarter sales and even gloomier Q4 estimates. The announced slashed anticipated EPS from $0.87 to between $0.46 and $0.51, far below the third quarter consensus estimate of $0.99. Most of this can be attributed to sales weakness in its Jos. A. Bank segment, dropping 14.6 percent in comparable sales, significantly under what was previously expected. Men’s Wearhouse’s stock closed at $22.70 on Friday, close to its 52 week low of $21.44.
Time Warner Inc.
The cable giant took a hit with two consecutive days of heavy hits, slumping by six percent and then another four percent the next day. Bank of America Merrill Lynch reacted promptly by downgrading the company’s stock from Buy to Neutral and revising its target price to $79.00 citing an atrocious quarter when it comes to earnings for Time Warner. The overall drop for the week was eight percent with the stock closing at $68.86 on Friday not far from its 52 week low of $65.25.