What’s The Deal With These Falling Stocks?

Page 2 of 2

Infinera Shares Plunge on Weak Guidance

Infinera Corp. (NASDAQ:INFN) has plunged by 23.5% after the company reported its first quarter earnings. For the first three months of the year, Infinera Corp. (NASDAQ:INFN) earned $0.19 per share on sales of $245.05 million, beating consensus earnings estimates by $0.02 per share but missing top-line estimates by $1.06 million. A major reason for the stock’s plunge however was soft guidance, as the company reported that it now expects second quarter revenue of $250 million-to-$260 million and EPS of $0.15-to-$0.19, beneath consensus estimates of $272.2 million in revenue and $0.22 in earnings per share. Weak global macro-economic conditions were cited as one reason for the soft guidance. The number of leading funds holding Infinera inched lower by two to 29 as of the end of December.

FirstEnergy Down After FERC Decides to Review Current and Future Income Guarantees

FirstEnergy Corp. (NYSE:FE) is 9.7% in the red after the Federal Energy Regulatory Commission (FERC) decided that it will review the income-guarantee plans that FirstEnergy gained approval for last month from Ohio’s public utilities commission. Given its role of ensuring that electric sales are fair, the FERC wants FirstEnergy to prove that its PPAs won’t harm the power market. The unusually long duration of the guarantees is one aspect of the deal that the FERC would like FirstEnergy to justify. Jim Simons‘ Renaissance Technologies was one of the top shareholders of FirstEnergy Corp. (NYSE:FE) at the end of 2015.

Follow Firstenergy Corp (NYSE:FE)

Potash Retreats on Earnings

Potash Corporation of Saskatchewan (USA) (NYSE:POT) turned in a mixed first quarter which has sent its shares down by 3.2%. For the January-to-March quarter, Potash earned $0.15 per share on sales of $1.21 billion, missing estimates of $0.16 per share and $1.16 billion, respectively. Average realized potash prices fell to $178 per tonne, down from $284 per tonne in the first quarter of 2015. Potash sales volumes also dropped to 1.8 million tonnes, down by 0.5 million tonnes from the same quarter a year ago. Management now sees full year 2016 EPS coming between $0.60 and $0.80, down substantially from the previous guidance of $0.90-to-$1.20.

Hedge funds in our database were less optimistic on Potash Corporation of Saskatchewan (USA) (NYSE:POT) in the fourth quarter. A total of 26 funds reported stakes in the company worth $768.29 million as of the end of December, down from 31 funds with stakes valued at $822.71 million at the end of September.

Follow Potash Corp Saskatchewan Inc (NYSE:POT)

Disclosure: None

Page 2 of 2