The stock market ended the trading week in the green territory, with all major indices gaining more than 1 percent after slipping into the negative territory at intra-day trading following a clash between US President Donald Trump and Ukrainian leader Volodymyr Zelensky at the White House.
Following the televised meeting, the two leaders concluded the encounter without a deal for joint development of mineral resources.
The Dow Jones jumped by 1.39 percent, the S&P 500 surged by 1.59 percent, and the Nasdaq soared by 1.63 percent.
Ten companies bucked a broader market optimism, with three stocks heavily battered by disappointing earnings results, losing more than 20 percent in their valuations.
In this article, we have detailed the reasons behind their weak performance.
To come up with Friday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
Stock market data on a laptop screen. Photo by Alesia Kozik on Pexels
10. Teleflex Inc. (NYSE:TFX)
Teleflex dropped for a second day on Friday, losing 4.57 percent to finish at $132.75 apiece as investors turned cautious following a series of news that included the company’s plan to split into two businesses, the resignation of an executive, and a shareholder law firm’s investigation into the company.
According to TFX, its board of directors has approved pursuing a plan to separate its Urology, Acute Care, and OEM businesses into a new publicly traded company called NewCo through the distribution of newly issued shares of NewCo to shareholders.
Meanwhile, the soon-to-be-separated RemainCo is expected to be “well-positioned to accelerate growth in attractive, primarily hospital-focused, emergent end markets, with a simplified operating model, streamlined manufacturing footprint and increased management focus.”
Separately, a shareholder law firm said it kicked off a probe into the stock’s sudden 20-percent drop to determine possible violations of federal securities laws.
9. The Mosaic Company (NYSE:MOS)
Mosaic dropped its share prices by 4.66 percent on Friday to finish at $23.92 apiece as investors’ sentiment was weighed down by its disappointing earnings performance last year.
In its latest earnings release, MOS said net income in the fourth quarter of the year declined by 53.7 percent to $169 million from $365 million in the same period last year, as revenues dropped by 12.5 percent to $2.8 million from $3.2 million.
Meanwhile, net income fell by a whopping 85 percent to $175 million last year from $1.165 billion in 2023, following the negative after-tax impact of notable items totaling $459 million, mainly from foreign exchange losses, partially offset by a gain on sale associated with the Ma’aden transaction.
Revenues similarly dropped by 18.9 percent to $11.1 million from $13.7 million primarily due to the impact of lower selling prices in the Potash and Mosaic Fertilizantes segments.
8. Dell Technologies Inc. (NYSE:DELL)
Dell Technologies saw its share prices drop by 4.70 percent, ending Friday’s trading at $102.76 each as investors continued to take profits following a surge in its price earlier in the week, boosted by better earnings performance last year.
In a statement, DELL said net income in three months ending January 31, 2025, grew by 27 percent to $1.532 billion from $1.208 billion in the same period a year earlier, while net revenues rose 7 percent to $23.931 billion from $22.318 billion.
Net income for the fiscal year 2025, on the other hand, increased by 36 percent to $4.576 billion from $3.372 billion a year earlier, while net revenues for the same comparable period grew 8 percent to $95.567 billion from $88.425 billion.
For the next full year, the technology giant expects revenues to settle between $101 billion and $105 billion, while first-quarter revenues were pegged at a range of $22.5 billion to $23.5 billion.
7. Walgreens Boots Alliance Inc. (NASDAQ:WBA)
Walgreens Boots Alliance declined by 4.9 percent to end Friday’s trading at $10.68 each as investors resorted to profit-taking while waiting on the sidelines ahead of more concrete updates on its potential acquisition by Sycamore Partners.
WBA has been trading sideways over the past few weeks on speculations of a $10-billion buyout deal of WBA by Sycamore, which the two have put on the table since December last year.
Hopes were further boosted by a social media post from credit information provider Octus on Monday that Morgan Stanley, UBS, and other private lenders are working on a $10 billion package to back Sycamore Partners’ potential buyout.
However, analysts said that WBA’s drop was due to the company already running too far on the transaction hopes.
Deutsche Bank, in its recent report, recommended selling WBA stocks and cut its price target to $9.
6. Enphase Energy Inc. (NASDAQ:ENPH)
Enphase extended its losing streak for a fourth day on Friday to hit a new all-time low of $56.83 at intra-day trading before gaining a little momentum to end the day just down 6.31 percent at $57.33 each.
According to analysts, the price level reflects significant volatility for the company, registering a 1.68 beta, indicating higher market sensitivity than average.
Over the past year, the company noticeably was tracking a downward trajectory, while year-to-date price registered a 16.53-percent drop.
In the fourth quarter of the year, ENPH saw net income triple to $62.16 million from $20.20 million in the same period a year earlier, while revenues rose by 26 percent to $382.7 million from $302.57 million.
However, full-year net income fell by a whopping 76.6 percent to $102.6 million from $438.9 million in 2023, while revenues declined by 42 percent to $1.33 billion from $2.29 billion year-on-year.
5. HP Inc. (NYSE:HPQ)
HP dropped for a fourth straight day on Friday, losing 6.82 percent to finish at $30.87 each as investors soured on disappointing earnings performance for the first quarter of fiscal year 2025.
In its latest earnings release, HPQ said net income for three months ending January 31, 2025, dropped by 9 percent to $565 million from $622 million in the same period a year earlier, while revenues inched up by 2 percent to $13.5 billion from $13.2 billion in the same comparable period.
According to HP Chief Finance Officer Karen Parkhill, HPQ said it drove solid progress in the first quarter of the year, “and are raising our Future Ready savings target from $1.6 to $1.9 billion dollars by the end of fiscal year 2025.”
“We are holding our outlook for the year and remain focused on disciplined execution as we continue to invest for the future,” she added.
4. NetApp Inc. (NASDAQ:NTAP)
NetApp fell below the $100 level on Friday, finishing the trading session down by 15.57 percent at $99.81 apiece as dismal earnings performance for the third quarter of fiscal year 2025 disappointed investors.
In its release, NTAP said net income for three months ending January 31, 2025, dropped by 4.4 percent to $299 million from $313 million in the same period a year earlier, while net revenues inched up by 2 percent to $1.64 billion from $1.6 billion in the same period.
Meanwhile, net income for the first nine months stood at $846 million, representing a 21.7-percent increase from the $695 million in the same period a year ago, while net revenues grew by 5 percent to $4.84 billion from $4.6 billion.
Following the results, financial services firm Wedbush lowered its price target for the company to $110 from $120 previously while keeping a ‘neutral’ rating for the company.
3. Acadia Healthcare Company Inc. (NASDAQ:ACHC)
Acadia fell for a third consecutive day on Friday to hit an all-time low of $29.79 before gaining momentum towards the trading session to end the day just down 25.53 percent at $29.98 apiece.
Investors continued to sell off following the release of its fourth quarter earnings performance, where net income fell 44 percent to $33.5 million from $59.7 million in the same period a year earlier, while revenues increased by 4.2 percent to $774 million from $742.8 million year-on-year.
ACHC, however, swung to a net income of $264 million last year from a net loss of $15.66 million in 2023, while revenues grew 8.6 percent to $1.69 billion from $1.57 billion.
For this year, ACHC expects revenues to settle between $3.3 billion and $3.4 billion, with adjusted earnings per share ranging from $2.5 to $2.8.
2. DLocal Ltd. (NASDAQ:DLO)
DLocal declined for a second straight day, losing a whopping 30.51 percent to finish at $9.56 apiece following a disappointing earnings performance last year.
In its release, DLO said net profit for the fourth quarter of 2024 grew by 4 percent to $29.7 million from $28.5 million in the same period a year earlier, but net income dropped by 19 percent to $120.5 million last year from $149.1 million in 2023.
Revenues for the quarter increased by 9 percent to $204.5 million from $188 million, while revenues for full-year 2024 grew by 15 percent to $746 million from $650.4 million in 2023.
Looking ahead, DLO said it expects a strong TPV growth ranging between 35 percent to 45 percent year-on-year, with revenue growth of 25 to 35 percent year-on-year.
1. DoubleVerify Holdings Inc. (NYSE:DV)
DoubleVerify fell to its lowest level of $13.42 apiece on Friday before gaining strength to finish the trading session down by 36.03 percent at $13.90 apiece, having delivered disappointing earnings performance.
During the day, DV also entered the oversold territory, with relative strength index or RSI hitting 20.5.
In its latest earnings release, DV’s net income last year fell by 21.2 percent to $56.2 million from $71.4 million in 2023, while revenues increased by 14.86 percent to $656.8 million from $572.5 million.
Net income for the fourth quarter alone dropped by 29 percent to $23 million from $33 million.
Looking ahead, DV expects revenues for the first quarter of the year to settle between $151 million and $155 million, while revenues for the full year were expected to increase by 10 percent.
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