Major U.S. stock indexes are trading down on Thursday, somewhat driven by a decline in Apple Inc. (NASDAQ:AAPL), a tumbling Japanese Yen, dropping oil prices and a spike in U.S. unemployment. Among the stocks posting significant declines are Kohl’s Corporation (NYSE:KSS), Himax Technologies, Inc. (ADR) (NASDAQ:HIMX), 21Vianet Group Inc (NASDAQ:VNET), YY Inc (ADR) (NASDAQ:YY) and Netflix, Inc. (NASDAQ:NFLX). So, let’s take a look into the events causing these decays, and into how the hedge funds in our database feel about the companies involved.
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Poor Results At Kohl’s Drag Retailers Down
Let’s start with Kohl’s Corporation (NYSE:KSS), whose shares are down by almost 11%, following the announcement of its first quarter financial results. The company’s EPS of $0.31 missed the Street’s consensus by $0.06, while revenue of $3.97 billion, down 3.6% year-over-year, came in $160 million below estimates. Comps were also down 3.9%, same as margins, which fell 140 basis points to 35.5% of sales, and operating income, which plummeted more than 60% year-over-year, to 2.7%. Among the almost 800 funds that we track, 22 were long Kohl’s Corporation (NYSE:KSS) by the end of the last fully reported quarter – the fourth quarter of 2015. Over the first quarter of 2016, Michael Messner’s Seminole Management incorporated to this list, with a new stake comprising 180,589 shares of the company.
Is Mr. Market Overreacting To Himax’s Revenue Miss?
Next up is Himax Technologies, Inc. (ADR) (NASDAQ:HIMX), whose stock has lost 11.85%, even though the company posted a first-quarter earnings beat with net income of $0.08 per ADS higher than the expected $0.07. However, revenue of $180.32 million missed the Street’s consensus by $1 million, and this seems to be weighing on the stock. For the ongoing quarter, management said it expects revenue to grow by 7.5% to 12.5% sequentially (or 14.6% to 19.9% year-over-year) to $193.8 million – $202.9 million, while analysts projected $194.8 million. Finally, the company forecasts GAAP earnings of $0.085 to $0.105 per ADS, well above estimates of $0.07 per ADS.
At the end of 2015, Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) saw 17 funds from our database holding 12.8% worth of stock. Columbus Circle Investors has reported a new stake containing 1.87 million shares of the tech firm, valued at more than $21 million at the end of the first quarter.