Although stocks may have gotten Tuesday’s action started on a bearish foot, it didn’t take long for the market to turn things around. By the time the closing bell rang, the S&P 500 was up 0.40% to close at 2,337.58. The index reached a new high in the process of making that gain.
Not every name could board the bullish train, however. Hibbett Sports, Inc. (NASDAQ:HIBB), Northern Dynasty Minerals Ltd (NYSEMKT:NAK) and FLIR Systems, Inc. (NASDAQ:FLIR) each tanked, and for good reason.
Here’s the deal.
FLIR Systems, Inc. (FLIR)
Security technology company FLIR Systems reported fourth-quarter results on Tuesday morning, but shareholders were less than thrilled with the numbers if the stock’s 6.2% setback is any indication.
For the quarter ending in December, FLIR Systems earned 52 cents per share on revenue of $474.7 million. The top line handily beat expectations of $452.3 million, though per-share profits missed estimates of 55 cents. Looking ahead, the company’s instruments and detection division is hitting a headwind that could take a toll on future bottom lines.
Exacerbating the weakness FLIR suffered today was the decision from CEO Andrew Teich to step down from his post. Teich has been with the company for nearly 20 years, and is a 30+ year veteran in the imaging industry.
Northern Dynasty Minerals Ltd (NAK)
Northern Dynasty Minerals shareholders were blindsided by Kerrisdale Capital today.
Kerrisdale Capital, a private investment manager, posted a report on Tuesday morning suggesting NAK shares are ‘worthless.’ The stock was up nearly 350% since the November election, on nothing more than Trump-inspired hope, according to Kerrisdale. The analysis in question opined:
“Based on our discussions with multiple people directly involved in planning the Pebble project, we believe the answer is simple: the upfront capital costs necessary to build and operate the mine are so onerous that the mine isn’t commercially viable. Indeed, Anglo American — Northern Dynasty’s former partner on the Pebble project, before it exited in 2013 — concluded that, under a range of scenarios and despite years of attempted optimization, building the mine would destroy billions of dollars of value.”
NAK ended the day down a whopping 21.4%.
Hibbett Sports, Inc. (HIBB)
Last but not least, Hibbett Sports shares fell 11.7% on Tuesday after issuing a warning to HIBB shareholders that its fiscal Q4 and coming full-year sales would be lower than the market is expecting. Details were limited, though CEO Jeff Rosenthal didn’t mince words, saying “We were disappointed with sales in the fourth quarter. Weaker traffic during the holiday season and lower than expected sales in apparel and equipment led to a comparable-store sales decline.”
The numbers Hibbett Sports did provide were a 2.2% decline in same-store sales, and a Q4 earnings-per-share outlook of between 53 cents and 55 cents, versus analyst estimates for a profit of 66 cents per share of HIBB. For the coming year, the company anticipates earning between $2.65 and 2.85 per share, versus a consensus estimate of $3.06.
It was enough for Deutsche Bank analyst Mike Baker to make point of saying he preferred rival Dicks Sporting Goods Inc (NYSE:DKS) over Hibbett Sports.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
