On the heels of news that 321,000 new jobs were created in November — the best we’ve seen since January of 2010 — stocks tried to finish the week on a high note. Most of the bulls checked out early for the weekend, though, with the market peeling back from the record high hit early on in the day.
And Arista Networks Inc. (ANET), Big Lots, Inc. (BIG), and The Cooper Companies, Inc. (COO) sure could have used a few more bulls and buyers in their corner on Friday. These three were among the worst of the worst, for wide array of reasons worth a closer look.
Big Lots (BIG)
The Q3 numbers from discount retailer Big Lots weren’t bad, but they weren’t what investors were hoping for either.
All told, Big Lots lost 6 cents per share in its fiscal third quarter, which was a penny worse than the estimated loss of only 5 cents. Sales of $1.11 billion were also shy of estimates of $1.12 billion. On the flipside, the loss narrowed from 16 cents per share in the same quarter a year earlier, although sales fell from $1.14 billion in the third quarter of 2014. Still, same-store sales were up 1.4%.
Big Lots also raised the higher end of its Q4 guidance, now expecting a profit of somewhere between $1.70 and $1.80 per share of BIG stock; the prior guidance was $1.70 to $1.76, with an average analyst estimate of $1.78.
Unfortunately, that wasn’t enough to stave off a 16% plunge from BIG stock.
The Cooper Companies (COO)
Surgery equipment and contact lens manufacturer The Cooper Companies posted less-than-stellar third quarter results after the close on Thursday, and shareholders took it out on the stock today, sending COO stock down 4% for the session.
All told, Cooper Companies posted adjusted earnings of $1.95 per share, falling short of analyst estimates for a bottom line of $2.03 per share of COO stock. Sales were also disappointing, rolling in at $468 million for the company’s Q3 versus an outlook of $481 million.
The company fanned the selling flames even further by lowering its 2015 outlook. Cooper Companies now expects per-share income of $7.30 to $7.70 for the coming year. Analysts had previously estimated 2015 income of $8.19 per share of COO stock. Revenue guidance was also lowered below estimates for 2015.
Arista Networks (ANET)
Networking startup Arista Networks is being sued by much bigger rival Cisco Systems, Inc. (CSCO), which claims the much smaller company is infringing on Cisco’s patents. This isn’t just another schoolyard stare-down between organizations that will do anything to stymie their competition, however.
Arista Networks could very easily be using Cisco technology, as several of Arista’s top managers and engineers are former Cisco employees. In fact, several of Arista’s managers have been named as the contributors to patents that Cisco now owns.
Bolstering the case against Arista is an observation that much of the same language used in Arista’s manuals reads verbatim — typos and all — with text found in Cisco manuals.
ANET stock was off 7% on Friday, spurred lower by news of the lawsuit.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
