GoPro (GPRO), Ralph Lauren (RL) and 3 Other Companies Join the Growing List of Stocks Battered by Weak Earnings

Although Ralph Lauren Corp (NYSE:RL) managed to beat earnings estimates for its third quarter of fiscal year 2016, investors were not pleased by the 4.3% decline in sales and the revised guidance for the full fiscal year. As a result, shares fell off a cliff, down by as much as 18% during the first hours of trading. In the fiscal third quarter, the clothing company registered a profit of $131 million or $2.27 per share when adjusted for one-time costs, beating analysts’ estimates of $2.11 per share. Revenue came in at $1.95 billion, as same-store sales tumbled by 7% during the quarter. Having previously projected flat revenue for fiscal year 2016, the company now believes a drop of 3% is more likely.

During the third quarter of 2015, hedge fund sentiment towards Ralph Lauren Corp (NYSE:RL) improved a bit, as the number of long positions increased to 33 from 28 quarter-over-quarter. Billionaire Ken Griffin saw great upside potential, having increased his investment in the company by 123% over the quarter, to amass 1.27 million shares of Ralph Lauren.

Pacific Biosciences of California (NASDAQ:PACB)‘s stock has also been hit by poor quarterly results, as investors pushed the stock lower by more than 20% during the first hours of trading today. The company issued its fourth quarter results yesterday after the closing bell, posting a loss of $0.02 per share, exactly what analysts were predicting. Revenue came in at $36.3 million, failing to meet the consensus of $38.4 million. The company’s full year loss narrowed to $31.7 million or $0.42 a share, on the back of $92.8 million in revenue. The stock had been in a slight downtrend this year, having declined by approximately 5% before the release of the earnings report.

Although only 11 funds of those we follow reported a stake in Pacific Biosciences of California (NASDAQ:PACB) as of the end of September, together they held 28% of the company’s common stock. Mitchell Blutt is betting big on this stock, with his firm Consonance Capital Management reporting ownership of 6.25 million shares of Pacific Biosciences of California as of September 30, up by 16% over the quarter.

Disclosure: None