While much of the talk this morning is about last night’s midterm elections and the impact the new-look Congress will have on the country, that’s not the only focus on Wall Street. We’re still in the midst of earnings season, and dozens of public companies report today both before and after the bell.
Shares of Stratasys (SSYS), Nu Skin (NUS), and Actavis (ACT) each moved big in early trading after delivering quarterly results this morning.
Stratasys (SSYS)
3D printing stocks have undergone one rocky roller coaster of a ride in the last few years, and Stratasys is no exception. SSYS stock more than doubled between March and December of 2013, but the stock was down more than 10% in 2014 before today’s moves, underperforming the S&P 500 by nearly 19 percentage points.
Investors didn’t get any more good news Wednesday morning, with SSYS stock losing 12% as of this writing, even after topping both revenue and earnings estimates. Third-quarter sales came in at $204 million and non-GAAP earnings per share clocked in at 58 cents. Analysts were calling for $195 million in sales and EPS of 57 cents. SSYS is now down 20% for the year.
SSYS stock was punished however, because on a GAAP basis the company actually lost $31.3 million, or 62 cents per share. Management also sees full-year EPS between $2.21 and $2.31, leaving little room for error if the company hopes to match Wall Street’s $2.30 per share expectations.
Nu Skin (NUS)
Nu Skin stock has also been an underperformer in 2014. In fact, shares have plunged 63.5% year-to-date, and that’s before the 15% dive NUS stock suffered in trading on Wednesday. The consumer goods company, which specializes in direct sales of anti-aging products and nutritional supplements, saw both sales and profits fall off a cliff last quarter.
NUS stock has been severely punished this year as a probe into the company’s selling tactics in China caused Nu Skin to suspend growth efforts in the region. Nu Skin stock’s technical indicators were telling a bearish story back in January, and now the fundamentals are following suit. Sales in Greater China — Nu Skin’s largest market — fell roughly 50% in the third quarter.
Total revenue fell 30% and profits tumbled 38% as a result.
Actavis (ACT)
Shares of generic drugmaker Actavis round out the last of today’s early morning movers, as ACT stock rose after its third-quarter results. Up 46% this year, ACT stock tacked on another 2% after a “beat and a raise.” Exceeding sales and profit forecasts, Actavis offered an EPS outlook between $13.51 and $13.61, a pleasant upgrade from the $13.29 analysts expected.
Gaining exposure to the branded drug business — as noted by InvestorPlace‘s own Louis Navellier back in January — gives ACT stock a bigger runway for growth. Its recent acquisitions of Warner Chilcott and Forest Laboratories led to exponential growth in its branded drug division last quarter, propelling the stock higher today.
As of this writing John Divine held no positions in any of the stocks mentioned. You can follow him on Twitter at @divinebizkid.
