In this article, we will take a look at the 10 biggest losers this week. If you want to see some more companies on the list, go directly to 5 Biggest Losers this Week.
U.S. stocks struggled to inch higher during the last trading day of September. All three key indices remained mostly in the red throughout the week, primarily due to recent rate hikes by the Fed.
Meanwhile, footwear and apparel retailers, including NIKE, Inc. (NYSE:NKE) and V.F. Corporation (NYSE:VFC), also lost significant value this week following their cautious commentary on weakening demand and elevated inventory levels.
In addition, shares of CarMax, Inc. (NYSE:KMX), Peloton Interactive, Inc. (NASDAQ:PTON) and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), also traded mostly lower in recent days. Check out the complete article below to see what brought these companies on the list of 10 biggest losers this week.
10. Worthington Industries, Inc. (NYSE:WOR)
Number of Hedge Fund Holders: 14
Shares of Worthington Industries, Inc. (NYSE:WOR) fell over 16 percent this week, and much of that drop is attributed to its recent quarterly report. The metals manufacturing company posted adjusted earnings of $1.61 per share for its fiscal first quarter, well below $2.46 per share in the corresponding period of 2021.
In addition, Worthington Industries, Inc. (NYSE:WOR) posted revenue of $1.4 billion versus $1.1 billion in the same quarter last year. Analysts were looking for earnings of $1.58 per share on revenue of $1.23 billion.
Subsequently, BMO Capital cut its price target for Worthington Industries, Inc. (NYSE:WOR) following its latest earnings report. The research firm trimmed its price target for the Ohio-based company from $58 per share to $52 per share on Friday, September 30. Analyst Katja Jancic pointed towards near-term challenges due to a sharp decline in steel prices.
9. Rite Aid Corporation (NYSE:RAD)
Number of Hedge Fund Holders: 16
Shares of Rite Aid Corporation (NYSE:RAD) lost more than 30 percent of their value this week. The drop came after the drugstore chain posted a wider-than-expected loss for its fiscal second quarter amid weak demand for coronavirus vaccines and testing.
Rite Aid Corporation (NYSE:RAD) posted an adjusted loss of 63 cents per share, while analysts were looking for a loss of 55 cents. Its quarterly revenue for the quarter also slipped 3.5 percent versus last year to $5.90 billion but exceeded the expectations of $5.77 billion.
Moving forward, Rite Aid Corporation (NYSE:RAD) trimmed its fiscal 2023 adjusted EBITDA outlook to a range of $450 – $490 million, from its earlier guidance between $460 – $500 million.
8. Rent-A-Center, Inc. (NASDAQ:RCII)
Number of Hedge Fund Holders: 23
Shares of Rent-A-Center, Inc. (NASDAQ:RCII) plummeted nearly 20 percent this week, largely due to its revised guidance for the third quarter. The rent-to-own company now expects adjusted earnings in the range of 85 – 95 cents, down from its previous guidance between $1.05 – $1.25 per share.
In addition, Rent-A-Center, Inc. (NASDAQ:RCII) projected revenue of $1 – $1.02 billion for Q3 versus its earlier outlook of $1 – $1.06 billion. The updated guidance is below analysts’ average estimate of $1.14 per share for earnings and $1.03 billion for revenue.
Discussing the outlook, CEO of Rent-A-Center, Inc. (NASDAQ:RCII), Mitch Fadel, said in a statement:
“External economic conditions have continued to deteriorate over the past few months. This has affected both retail traffic and customer payment behavior, so we are updating third quarter guidance to reflect the impact of those trends on our business.”
7. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 24
Shares of Carnival Corporation & plc (NYSE:CCL) plunged to a new low this week after announcing weak financial results for its fiscal third quarter. The British-American cruise operator faced difficulties during the quarter as customers limited their spending on leisure activities due to record inflation.
Carnival Corporation & plc (NYSE:CCL) reported a loss of 65 cents per share on revenue of $4.31 billion for its fiscal Q3. The results missed Wall Street expectations. Looking forward, Carnival Corporation & plc (NYSE:CCL) expects its fiscal Q4 adjusted EBITDA in the range of breakeven to marginally negative.
Like Carnival Corporation & plc (NYSE:CCL), NIKE, Inc. (NYSE:NKE), V.F. Corporation (NYSE:VFC) and CarMax, Inc. (NYSE:KMX) are also on the list of 10 biggest losers this week.
6. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 25
Shares of NIO Inc. (NYSE:NIO) lost nearly 10 percent of their value this week. Some are attributing the drop to the elevated geopolitical tensions, while others are linking it to the company’s recent warning about a slow-than-expected European expansion.
NIO Inc. (NYSE:NIO) shares are already down more than 50 percent on a year-to-date basis. Earlier this month, the Chinese electric vehicle giant posted a wider-than-expected loss for the second quarter.
The company reported an adjusted loss of 20 cents per share, while analysts were looking for a loss of 17 cents. Its gross margin for the quarter also dropped to 13 percent, from 18.6 percent in the corresponding period of 2021. On the bright side, NIO Inc. (NYSE:NIO) generated sales of $1.54 billion, beating the consensus of $1.43 billion.
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Disclosure: None. 10 Biggest Losers this Week is originally published on Insider Monkey.