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Friday was a good day on Wall Street, as positive news on the domestic political front prompted market participants to send benchmarks on stocks posting substantial gains. The earnings season has peaked, but overall, investors have been much more comfortable with the idea that sustained economic growth could last up to the end. 2019 compared to the decline observed on the stock market in December. Nevertheless, not all companies have been able to succeed in a difficult time. Newell Brands (NYSE: NWL), TrueCar (NASDAQ: TRUE), and XPO Logistics (NYSE: XPO) were among the worst performers. Here's why they hurt so badly.
Newell's results thrill shareholders
Newell Brands shares fell 21% after the company released its fourth quarter financial results. The manufacturer of products, including Graco strollers, Rubbermaid cookware and Sharpie pens, said sales were down 6% in the fourth quarter from the same period last year, and that the modest gains made did not correspond to what the investors hoped to see. . Poor results were recorded across the company, with the learning and development, food and appliances segments, as well as home and outdoor living all registering a net decline. In addition, Newell warned that the sales problems would probably persist in 2019. The CEO, Michael Polk, is optimistic that the company can complete its transformation plan this year, but this forces shareholders to continue to demonstrate patience for a year.
Source of the image: TrueCar.
TrueCar leaves the road
TrueCar saw its stock dive 25% after the release of its fourth quarter financial report. The online car buying service saw sales climb 10% over the previous year's level, but TrueCar still had a modest loss for the period and adjusted earnings were not as high as expected after the actions. The number of unique visitors to its website has decreased from the previous year, and CEO Chip Perry explained that problems with TrueCar's operations accounted for both the disappointing results and the limited forecasts of the company for 2019. Until it can demonstrate its ability to return TrueCar may be struggling to regain investor confidence.
XPO can not make an extra effort
Lastly, XPO Logistics shares fell by almost 13%. The transportation and logistics company said sales growth slowed to just 5% in the fourth quarter of 2018, down from double-digit levels in the previous quarter. XPO noted that the difficulties encountered in key regions of Europe weighed on its results, but that the logistics business was also suffering from lower profitability because of the strategic decisions made by its more large customer, widely regarded as highly dependent on e-commerce deliveries. CEO Brad Jacobs warned that these hurdles could remain in place until 2019, forcing some shareholders to determine whether it is wise to expect a short-term recovery of XPO.
Dan Caplinger has no position in the mentioned actions. The Motley Fool recommends TrueCar and XPO Logistics. Motley Fool has a disclosure policy.
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