Why Alexion Pharmaceuticals, Inc. (ALXN), Xilinx, Inc. (XLNX) and AutoZone, Inc. (AZO) Are 3 of Today’s Worst Stocks

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Despite a horrifying terrorist attack that claimed the lives of 22 victims in Manchester, England last night, investors were able to look past it and remain bullish today. The S&P 500 gained 0.18% to end the session at 2,398.42, on the verge of testing record highs.

Why Alexion Pharmaceuticals, Inc. (ALXN), Xilinx, Inc. (XLNX) and AutoZone, Inc. (AZO) Are 3 of Today's Worst StocksIt wasn’t a bullish day for every name though. Xilinx, Inc. (NASDAQ:XLNX), Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) and AutoZone, Inc. (NYSE:AZO) were each decidedly pointed in the other direction, for understandable reasons.

AutoZone, Inc. (AZO)

Auto parts retailer AutoZone gave investors a not-so-gentle reminder on Tuesday that earnings season isn’t quite over yet, and that not every name did as well as hoped in Q1.

For the quarter ending early this month, AutoZone posted earnings of $11.44 per share on sales of $2.62 billion. The bottom line grew 6% on a year-over-year basis, though that still fell short of the profit of $12 per share of AZO analysts were looking for. Those pros were also calling for a top line of $2.71 billion. Perhaps most alarming of all, though, was that same-store sales slumped 0.8% versus an expected rise of 2.4%.

The company explained that a delay in tax refunds was the root cause of the shortfall. But, AZO owners weren’t sympathetic, noting some retailers mustered better growth last quarter even with the same disadvantage. AZO ended the day down 11.8%.

Alexion Pharmaceuticals, Inc. (ALXN)

Alexion Pharmaceuticals shares lost 9.3% of their value, with ALXN owners not sure what to make of a significant and surprising management shakeup.

The most shocking move is the exit of CFO Dave Anderson, who only stepped into that role in December. CCO Carsten Thiel and Chief Human Resources Officer Clare Carmichael will also be gone by the beginning of June.

The moves are likely part of sweeping changes CEO Ludwig Hantson feels he needs to make to kickstart a much-needed turnaround for the biopharma company, though in that he’s only held that role since March, the scope of the shakeup is alarming. As BMO analyst M. Ian Somaiya put it:

“It is difficult at this point to get a good read on what these particular changes mean and if we should expect the company to be run better or do better deals. For starters, we do not even know who the permanent CFO will be, although we understand the turnover and uncertainty may add volatility for ALXN shares.”

Xilinx, Inc. (XLNX)

Finally, semiconductor company XLNX found itself on the wrong end of an analyst’s action on Tuesday.

This morning, Wells Fargo analyst David Wong did the deed, downgrading WFC to “Market perform” in response to a strong runup that wasn’t accompanied by a particularly compelling growth outlook. The company’s guidance suggests revenue growth of only 6% in the coming year.

Wong also reiterated a price target of $66 per share. XLNX closed at $63.97 today, down 5.3%.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/05/why-alexion-pharmaceuticals-inc-alxn-xilinx-inc-xlnx-and-autozone-inc-azo-are-3-of-todays-worst-stocks/.

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