Poor First-Quarter Results Push These Five Stocks Lower Today

Gap Inc (NYSE:GPS) is down by more than 10% this morning after another disappointing report, which investors took as a sign that the company’s turnaround efforts have failed to pay off. The company released preliminary results on Monday, which show that same-store sales, a key metric, have fallen by 7% in April, while analysts expected a 1% gain. Gap said it expects first-quarter earnings to range between $0.31 and $0.32 per share, significantly lower than the analysts’ consensus of $0.41 per share. The company also said it it also looking for ways to increase the efficiency of its Banana Republic and Old Navy chains, especially outside the US. Gap Inc (NYSE:GPS) is scheduled to release the full first quarter report on May 19, after the closing bell. According to its latest 13F filing, David Harding‘s Winton Capital Management holds 2.25 million shares of Gap, down by 18% for the quarter. The value of this positions at the end of the first quarter was estimated at $66.3 million.

Another weak quarter for Lumber Liquidators Holdings Inc (NYSE:LL) shows that the company is finding it difficult to regain the trust of customers and investors alike. Back in March 2015 the company was accused of selling floorboards with cancer-causing levels of formaldehyde. One year later and a management shakeup, and the results are still disappointing. Lumber Liquidators posted a 10% year-over-year decline in revenues to $233.5 million, while the first quarter loss widened to $1.20 per share from $0.29 a share reported a year ago. The company has also indicated an increase in overhead expenses, triggered mainly by charges related to its consolidated securities class action and other legal and professional fees. The stock is down by approximately 30% for the year and by roughly 82% since last year’s high of $69.99 per share. Lumber Liquidators Holdings Inc (NYSE:LL) is not a very popular stock among top hedge funds, with only 15 of them having reported a stake in the company as of the end of the fourth quarter, which is the equivalent of 2% of the funds followed by Insider Monkey.

Stamps.com Inc. (NASDAQ:STMP) shareholders were all smiles this morning, but not for long. The stock jumped on better-than-expected first quarter results, but the gains were quickly erased during the first hour of trading. A web-based postage company, Stamps.com has reported a net income of $13.2 million for the first quarter, which translates into $1.72 per share, when adjusted for one-time charges. The company also registered revenues of $81.8 million in the period, up by 84% compared to the same period of 2015. These figures easily beat market expectations, as analysts had projected revenues of $69.7 million and earnings of $1.07 per share. Stamps.com Inc. (NASDAQ:STMP) was Josh Goldberg‘s top equity bet at the end of 2015, with his fund, G2 Investment Partners Management, having reported ownership of 646,757 shares in its last 13F filing.

Disclosure: none.