These Stocks Are Not Winning Today: Rewalk Robotics, Theravance Biopharma, Community Health Systems and More

Although it bought out its competitor LivingSocial for a “not material” consideration, Groupon Inc (NASDAQ:GRPN) has fallen by 16% due to its third quarter earnings report. While Groupon’s loss of $0.01 per share beat Wall Street’s estimates by a penny and its revenue of $720.47 million beat estimates by $10 million, the market was clearly expecting more than analysts, as Groupon’s results clearly failed to meet the market’s expectations. Some traders also didn’t like the fact that gross billings dropped by 2% due to various country exits. In terms of guidance, Groupon expects 2016 EBITDA of $150 million-to-$165 million on revenue of $3.075 billion-to-$3.15 billion. The number of funds in our system owning positions in Groupon Inc (NASDAQ:GRPN) rose by five quarter-over-quarter to 23 at the end of June.

AK Steel Holding Corporation (NYSE:AKS) is almost 10% lower after the company announced the offering of 65 million shares of common stock at $4.90 apiece. In connection with the offering, AK Steel has also granted underwriters a 30-day option to buy up to a further 9.75 million shares. AK Steel intends to use the money to repay outstanding borrowings under its revolving credit facility and for general corporate purposes. 32 funds in our system had a long position in AK Steel Holding Corporation (NYSE:AKS) at the end of the second quarter, up by 15 funds from the end of the first quarter.

Community Health Systems (NYSE:CYH) is 38% in the red after the company reported disappointing preliminary financial results for the third quarter. For the three months ended September 30, Community Health anticipates a loss from continuing operations before taxes as reported of $83 million and adjusted EBITDA of $465 million on revenue of $4.38 billion. That translates to a loss of $0.69 per diluted share and a loss of $0.35 per share when excluding certain items. Those figures are in stark contrast to Wall Street’s expectations of earnings of $0.32 per share. The poor performance was due to lower volumes, as total admissions fell by 12.4% year-over-year, as well as larger-than-anticipated reductions in terms of various reimbursements, and the lack of solid expense reduction control. In terms of guidance, the company now anticipates adjusted EBITDA of between $2.2 billion and $2.275 billion for the full year, down from the previous guidance range of between $2.4 billion and $2.55 billion. 33 funds that we track were long Community Health Systems (NYSE:CYH) at the end of the second quarter, down by nine funds quarter-over-quarter.

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