When the world didn’t end this weekend, traders were comfortable enough to buy back the stocks they sold off on Friday … only they bought them back, and then some. The S&P 500‘s close of 2,198.18 was 0.75% better than Friday’s close, and the index it hit an all-time high of 2,198.70 on Monday.
Not every stock was breaking records today, though. Canadian Solar Inc. (NASDAQ:CSIQ), Energy Transfer Partners LP (NYSE:ETP) and Tyson Foods, Inc. (NYSE:TSN) were all deep in the red, though for understandable reasons.
Here’s what investors need to know.
Tyson Foods, Inc. (TSN)
As if the earnings miss and lackluster outlook weren’t bad enough, the fact that Tyson Foods CEO Donnie Smith is stepping down may have made matters worse rather than better. By the time the closing bell rang, TSN shares were off to the tune of 14.5%.
For the recently completed third fiscal quarter, meat company Tyson earned 96 cents per share on sales of $9.16 billion. Analysts, however, were calling for a bottom line of $1.16 per share of TSN and revenue of $9.4 billion. For the full year, the company now expects a profit of between $4.70 and $4.85 per share of TSN. The pros were looking for earnings of $4.98 per share. Rising chicken feed costs and waning demand were cited as the culprits for the shortcoming.
The exit of Donnie Smith also has some TSN shareholders concerned. While replacement Tom Hayes is respectably qualified, the transition comes at a tenuous time for Tyson Foods.
Energy Transfer Partners LP (ETP)
With just a cursory look at the headlines, one would think the news was good — Sunoco Logistics Partners L.P. (NYSE:SXL) is acquiring Energy Transfer Partners, and even though most investors recognize it’s more of a merger than a buyout, it’s a welcome event.
So then, why were ETP shares down 7.2% on Monday? InfraCap MLP ETF (NYSEARCA:AMZA) manager Jay Hatfield may have summed it up best, explaining:
“We believe that the initial negative stock price reaction for SXL/ETP is driven by the fact that SXL, the acquirer, is a much smaller company than ETP and the merger will result in a net implicit reduction in dividend yield for ETP holders.”
Sunoco Logistics shareholders weren’t thrilled either. SXL shares ended the day lower by 6.5%.
Canadian Solar Inc. (CSIQ)
Finally, although Canadian solar panel maker Canadian Solar may have met last quarter’s earnings estimates, but CSIQ shareholders were counting on a beat. They were punished for their optimism today.
Last quarter — the company’s third fiscal quarter of the year — Canadian Solar earned the expected 29 cents per share on sales of $657.3 million. Problem: Those same analysts that were looking for income of 29 cents per share of CSIQ were also calling for a top line of $679.9 million. With or without the revenue shortfall, installations are slowing down. The company recognized 1,161 megawatts worth of revenue during Q3, versus 1,290 megawatts worth of revenue for the second quarter.
CSIQ closed 8.7% lower for the session.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.