Why Are These Five Stocks Falling on Thursday?

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HealthSouth Corp (NYSE:HLS), one of the largest providers of post-acute healthcare service,  is off by 2% after the healthcare giant reported third-quarter earnings of $0.52 per share on revenues of $778.6 million, missing earnings estimates by $0.07 per share, but beating revenue expectations by $20.97 million. Guidance is a bit light, with the company expecting 2015 adjusted earnings to be $1.94-$1.99 per share and adjusted EBITDA to be $675-$685 million, versus previous guidance of $2.11-$2.17 and $670-$680 million, respectively. At a forward P/E of under 14, shares look attractive, although management will need to control costs better for the optimistic scenario to play out. According to our data, 25 funds reported stakes worth $530.52 million (representing 12.60% of the float) at the end of June, up from 23 funds and $430.39 million at the end of March. Larry Robbins‘ Glenview Capital owned 4.49 million shares of HealthSouth at the end of June.

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Last but not least, Buffalo Wild Wings (NASDAQ:BWLD) is down by 16.94% after the wing chain reported third quarter earnings of $1 per share on revenues of $455.5 million (up by 22% year-over-year), missing expectations by $0.29 per share and $9.49 million, respectively. Guidance is a bit soft, with management anticipating single-digit net earnings growth for the year. Increased labor costs and higher wing costs played a part in the results missing the estimates, as did a shift in the football calendar. Growth is clearly slowing, as same store sales rose 3.9% in company-owned restaurants and 1.2% in franchised locations in the third quarter, versus the 4%+ and 3%+ same store sales growth in the previous quarter. Buffalo Wild Wings is still a growth stock, but it may need some time to consolidate and management to do a better job at controlling costs before rising again.

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