The stock market spent most of the day in the red on Wednesday, but at closing it was not easy. the Dow Jones Industrial Average fell by about 70 points, but other major indices ended up being unchanged, investors being reassured by the continued strength of the US economy. Even with this wind in their sails, some individual companies have not been so fortunate and have been facing business-specific problems that have weighed on their stock prices. Axon Enterprise (NASDAQ: AAXN), Mylan (NASDAQ: MYL), and Weight Watchers International (NASDAQ: WTW) were among the worst performers. Here's why they hurt so badly.
Axon is zapped
Axon Enterprise shares fell 8% after the Taser maker released its fourth quarter financial results. Axon's revenue increased by 21%, mainly due to significant gains in its cloud business and international sales. Bookings for its software and sensor offerings also increased by more than half, and other retrospective indicators seemed solid. However, net gains did not translate into expected earnings growth for investors, and shareholders also seemed disappointed by the forecast for 2019, which includes sales growth of only 14% to 17%. Axon will simply have to prove that he can support faster growth if he wants to regain investor confidence.
Mylan does not look good
Mylan saw its stock fall by 15% following the release of the pharmaceutical giant's fourth quarter report. Revenues for the quarter were down 5% from the same period last year and adjusted earnings dropped 9% per share, closing a difficult year for the company. In addition, Mylan was experiencing persistent manufacturing difficulties in its West Virginia plant and, although the drug manufacturer hoped that 2019 would be more promising, the expected sales growth will not necessarily translate into higher profits. . In the long run, Mylan will have to show that investments in its research and development capabilities will pay off with large-scale drugs.
Weight Watchers leaves investors perplexed
Finally, Weight Watchers International's shares plummeted by more than 34%. The weight loss and wellness specialist recorded a 6% increase in its sales in the fourth quarter of 2018, with adjusted operating income up 28%. However, forecasts for 2019 were extremely weak, with calls for earnings per share of $ 1.25 to $ 1.50, compared to $ 3.19 per share published by Weight Watchers in 2018. Early readings on the season of January membership also showed poor results and the name change of the company. WW was poorly communicated and confusing to customers. Mindy Grossman, CEO, continues to believe that society's focus on weight loss and well-being is more in line with changing consumer preferences. However, with intense competition in the industry, Weight Watchers can not afford other performance mistakes.
Dan Caplinger has no position in the mentioned actions. Motley Fool owns shares and recommends Axon Enterprise. The Motley Fool recommends Mylan. Motley Fool has a disclosure policy.