Why Apple (AAPL), Biogen (BIIB) and Illumina (ILMN) Are 3 of Today’s Worst Stocks

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Rattled by an alarming outlook from Apple Inc. (NASDAQ:AAPL) and dismissive of the fact that existing home sales reached a multi-year high pace last month, traders logged a second consecutive day of market losses. When all was said and done, the S&P 500’s close of 2114.15 was 0.24% lower than Tuesday’s.

Why Apple Inc. (AAPL), Biogen Inc. (BIIB) and Illumina, Inc. (ILMN) Are 3 of Today's Worst StocksIt was even worse, however, for owners of Biogen Inc. (NASDAQ:BIIB), Apple, and Illumina, Inc. (NASDAQ:ILMN). These three stocks were among Wednesday’s biggest losers, and all for understandable reasons…mostly earnings related.

Illumina (ILMN)

An earnings beat just wasn’t enough for Illumina today. The market sent ILMN stock more than 8% lower following the company reported second quarter sales that fell short of analyst estimates.

The good news is, the gene-sequencing company earned 80 cents per share, versus estimates for a profit of 77 cents per share of ILMN. The bad news is, sales of $539 million was a few million shy of the $542 million the pros had modeled for the second quarter. The really bad news is, it was the third quarter in a row that sales growth slowed for the company, even though the top line grew 21% compared to Q2 2014 revenue. Illumina shareholders are increasingly concerned the slowdown may be something that can’t be overcome.

Biogen (BIIB)

The hunt Biogen is on to acquire a truly great Alzheimer’s drug is far from over, and BIIB shareholders are none too happy about it.

This morning, biotech company Biogen released the latest efficacy data on the phase I/II trial of aducanumab (BIIB-037) as a means to treat Alzheimer’s disease. The drug successfully reduced the amount of beta amyloid plaque found in patients’ brains, but a typical dose didn’t show a significant improvement in mental function.

Biogen put a positive spin on the numbers, but the market wasn’t buying it. BIIB shares closed down more than 4% on Wednesday.

Apple (AAPL)

Last but certainly not least, the world’s most recognizable consumer technology name, Apple, saw its stock fall more than 4% today after reporting earnings that were not only much better than the year-ago comparables, but much better than anticipated. The outlook for the current quarter was lackluster though, and AAPL owners paid the price.

In its third fiscal quarter of this year, Apple earned $1.85 per share on $49.6 billion worth of revenue. Both numbers topped estimates. Analysts were only expecting earnings of $1.81 per share and a top line of $49.4 billion. Better yet, revenue was up a hefty 33%, and net income grew a stunning 38%.

The prod for the pullback from AAPL was an alarming outlook for the current quarter and disappointing sales of its flagship iPhone. The company sold a “mere” 47.5 million of them last quarter, falling short of the anticipated 50 million. Apple also predicted it would generate sales between $49 billion and $51 billion for the current quarter, which was on the lower end of the average $50.9 billion the pros had been calling for.

AAPL owners, unaccustomed to anything but huge success, simply got spooked.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2015/07/apple-inc-aapl-biogen-inc-biib-illumina-inc-ilmn-3-todays-worst-stocks/.

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