Although it struggled to hang onto all of the intraday gain it made today headed into the weekend, the market finished the sessions with a respectable advance. The S&P 500‘s close of 2168.27 was 0.8% better than Thursday’s close, leading to a very slight full-week gain.
Not every name got in on that rally, however. In fact, CalAmp Corp. (NASDAQ:CAMP), Wynn Resorts, Limited (NASDAQ:WYNN) and Cognizant Technology Solutions Corp (NASDAQ:CTSH) were particularly poor performers today.
Here’s what went wrong for each.
Cognizant Technology Solutions Corp (CTSH)
It’s not clear if there was any wrongdoing, but the fact that Cognizant Technology Solutions President Gordon Coburn has unexpectedly resigned would at least suggest something is amiss.
CTSH ended Friday more than 13% lower following reports that the company was investigating whether it violated the U.S. Foreign Corrupt Practices Act by making improper payments to a facility in India. The company voluntarily informed U.S. Department of Justice and the Securities and Exchange Commission of its investigation, which isn’t an admission of guilt, but it does create an alarming implication.
Citi downgraded CTSH from a “Buy” to “Neutral” following the announcement, deeming that the probe made the stock uninvestable until the shadow of doubt was gone.
Wynn Resorts, Limited (WYNN)
CTSH wasn’t the only name to plunge following the unexpected departure of a key executive. Wynn Resorts Macau President Gamal Abdelaziz also resigned today, sending WYNN shares more than 3% lower as a result.
Wynn made it clear in an official statement that “Mr. Aziz has confirmed that he has no disagreement with the board and that there are no other matters in relation to his resignation that need to be brought to the attention of the shareholders of the company.”
Still, it’s a disruption at a point when the company didn’t need one.
While Macau was considered the next Las Vegas when the Chinese enclave finally allowed gambling establishments to be built there several years ago, its heroic growth hit a wall as a result of a regulatory crackdown that began in 2014.
With the greater scrutiny and new rules now more than a year old, year-over-year revenue was expected to start growing well again for Macau’s casino operators like Wynn Resorts. That growth has been anemic so far, however, and not everyone is confident Wynn will fully participate in whatever gambling recovery Macau can muster. Abdelaziz may well be one of the doubters.
CalAmp Corp. (CAMP)
Last but not least, wireless communication technology company reported earnings after yesterday’s close that fell short of expectations, sending CAMP shares lower as a result. All told, CalAmp earned 27 cents per share on revenue of $90.5 million in its fiscal second quarter, versus expectations for earnings of 28 cents per share and a top line of $92.1 million.
The forecast for the current quarter was similarly disappointing. CalAmp foresees earning between 24 and 30 cents per share of CAMP on sales between million and $87 million. Analysts were calling for income of 31 cents per share and $95 million.
CAMP fell 15% for the session.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
