What Sent These Stocks Lower on Wednesday?

Big 5 Sporting Goods Corporation (NASDAQ:BGFV) has lost over 11% after the company reported earnings of $0.28 per share on revenues of $270.13 million (up by 1.9% year-over-year), missing estimates by $0.02 and $3.31 million, respectively. Sales were challenged “by cycling the benefit of Men’s World Cup soccer-influenced sales during the third quarter of last year, as well as by the continuing impact of the drought in our markets on certain summer-related product categories”. Guidance is for fourth quarter earnings to be $0.10 to $0.20 per share and for same store sales to be ‘in the low negative single-digit to low positive single-digit range’. A total of 16 funds reported stakes worth $56.15 million (representing 17.70% of the float) at the end of June, versus 15 funds and $52.63 million at the end of March. Alexander Medina Seaver’s Stadium Capital Management owned 2.51 million shares at the end of June.

Last but not least, AFLAC Incorporated (NYSE:AFL)’s stock declined in extended trading, but has climbed  by nearly 2% since the opening, after the company reported third quarter earnings of $1.56 per share on revenues of $5 billion (down 12.3% year-over-year), beating profit expectations by $0.08 per share but missing revenue estimates by $170 million. The strong dollar and a weaker Yen are having a negative effect on revenues, although management is doing a good job at controlling costs. Given the price to book ratio of 1.5, shares of AFLAC are not cheap, although they certainly aren’t expensive either. If Japan’s economy begins growing again, the stock will do well. Hedge funds are ambivalent on AFLAC Incorporated (NYSE:AFL). A total of 27 funds owned 2% of the stock’s float at the end of June.

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