The Shoddy Results That Have These Four Stocks Plunging Today

Avis Budget Group Inc. (NASDAQ:CAR) is off by 12.5% after reporting third quarter earnings of $1.98 per share on revenues of $2.58 billion, missing expectations by $0.04 per share and $20 million, respectively. Guidance was a little soft, with management expecting 2015 EPS of $3.10-to-$3.25 versus expectations of $3.36 per share, and revenue growth of 1% versus estimates of 1.3%. The company spent $161 million to buy back 3.7 million shares in the quarter and will spend more than $300 million in 2015 buying back shares. The strong dollar is still weighing on earnings, although the big buybacks should firm up EPS. Hedge funds are bullish, as 51 funds owned $2.37 billion of Avis Budget Group Inc. (NASDAQ:CAR)’s shares, representing a massive 51.00% of the float, on June 30, with Karthik Sarma‘s SRS Investment Management among them with a holding of 10.0 million shares.

Louisiana-Pacific Corporation (NYSE:LPX) is down by 4.32% after reporting a third quarter loss of $0.12 per share on revenues of $465 million (down by 10.2% year-over-year), missing expectations by $0.05 per share and $42.49 million, respectively. Revenue from the company’s oriented strand board division declined by 14% year-over-year while sales from the engineered wood products segment inched down by 4% year-over-year. Given the strong U.S economy and solid housing market, management is still optimistic, however. If housing starts pick up, look for shares to rally. According to our data, 16 funds owned $425.04 million worth of Louisiana-Pacific Corporation (NYSE:LPX)’s shares on June 30, with Jeffrey Altman‘s Owl Creek Asset Management among the bulls, with a holding of 4.67 million shares.

Disclosure: None