Despite the strong finish to the previous trading week, the bulls weren’t as gung-ho when the new trading week started on Monday. With no new economic data to latch onto, the S&P 500 lost 0.21% for the session, ending it at 2,292.56.
It could have been worse though … you could have owned Comscore, Inc. (NASDAQ:SCOR), Tyson Foods, Inc. (NYSE:TSN) and Newell Brands Inc (NYSE:NWL). These three names couldn’t do anything right today, and investors paid the price.
Newell Brands Inc (NWL)
Consumer goods company Newell Brands may have met its earnings estimates for the recently completed fourth quarter, but revenue fell short of expectations, spooking NWL shareholders.
For the quarter ending in December, the maker of Rubbermaid totes, Sharpie markers and Elmer’s glue (just to name a few) earned the expected 80 cents per share of NWL, but sales of $4.14 missed estimates of $4.27 billion. For the coming year, Newell Brands anticipated reporting sales of between $14.52 billion and $14.72 billion, falling short of estimates of $15.16 billion.
NWL ended the day down 5.7%.
Tyson Foods, Inc. (TSN)
Sometimes the mere appearance of a potential misstep is damning enough — just ask Tyson Foods shareholders today. TSN stock tumbled 3.4% today on the heels of news that the company had been issued a subpoena as part of an investigation of a possible price-fixing scheme.
It’s not actually a surprise. Rival Maplevale Farms filed a suit in October claiming that Tyson, Koch Foods, Perdue Farms and other chicken companies had been colluding to prop prices up since 2008, by capping their output. The matter took a turn for the worst, however, as the U.S. Securities and Exchange Commission has become involved … the subpoena came from that government agency.
The concerning news overshadowed an otherwise commendable first quarter and encouraging outlook. For the quarter ending in December, Tyson Foods earned $1.59 per share on sales of $9.18 billion. Analysts were only calling for a profit of $1.27 per share of TSN and a top line of $9.03 billion.
Comscore, Inc. (SCOR)
Last but not least, web-traffic measurement company Comscore warned SCOR owners on Monday that it wouldn’t be able to file its required qurterly documents by the Feb. 23 deadline.
Comscore has been working to review and then refile all of its accounting documents submitted between 2013 and early 2016 after an internal investigation determined it had improperly booked nonmonetary transactions as revenue. The correct numbers are being calculated, but it’s a slow-going process. The company thinks it could take until summer, at least, to come up with a revised set of numbers, saying in a release today:
“The delay primarily relates to the magnitude of work that the company needs to perform in order to review the company’s accounting judgments and estimates for transactions that occurred during 2013-2016. Although the company has made good progress towards this effort, the amount of work, primarily in the revenue area, has taken longer than anticipated.”
SCOR closed with a loss of 28.4% on Monday.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.