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Why 4 of Last Night’s Biggest Losers Are Still Struggling in the Light of Day

There’s been no reprieve today for four stocks that were among the biggest losers in after-hours trading yesterday, as each gapped open lower today and continues to struggle in the harsh light of day. Let’s see what woes have afflicted these stocks and caused nightmares for its investors last night.


We’ll start with FireEye Inc. (NASDAQ:FEYE), which released an unexpectedly poor third quarter earnings report in yesterday’s after-hours session, along with weak fourth quarter guidance. While sales for the third quarter were strong at $166 million, a 45% year-over-year increase, and earnings beat estimates despite falling by 6% to a GAAP net loss of $0.88 per share, it was the internet security company’s weak guidance and billings that crushed its stock, which is down by 23.66% today. FireEye Inc. (NASDAQ:FEYE)’s billings came in at $210.6 million, 6.5% below the low-end of its guidance and even further below analysts’ estimates, while it slashed its full-year revenue and income guidance, with its projected non-GAAP net loss of $1.62 dwarfing the previous projected loss of $0.75.

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After cresting $85 in late-February 2014, shares of FireEye Inc. (NASDAQ:FEYE) have lost over 70% of their value since and are down by 29.21% this year. Analysts and the elite hedge funds tracked by Insider Monkey were both losing confidence in the stock in advance of today’s tumble.

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Shares of Castlight Health Inc (NYSE:CSLT) are being battered even worse than FireEye’s, losing 25.47% of their value today, despite the healthcare management services provider announcing an expanded collaboration with Anthem Inc (NYSE:ANTM) yesterday, which will include the two companies jointly promoting Castlight Health Inc (NYSE:CSLT)’s services to Anthem Inc (NYSE:ANTM)’s customers.

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It was Castlight Health Inc (NYSE:CSLT)’s third quarter earnings report that appear to have done the firm’s stock in, despite the revenue of $19.50 million and earnings of a loss of $0.17 per share being in-line with estimates. The main culprit appears to be its fourth quarter guidance of $20.7 million-to-$21 million in revenue and a non-GAAP net loss per share of $0.16-to-$0.17, which were worse than estimates. Furthermore, the stock was downgraded by Leerink Swann to ‘Market Perform’ from ‘Outperform’ following the earnings and Anthem Inc (NYSE:ANTM) collaboration announcement, though Stifel Nicolaus reiterated a ‘Buy’ rating on the stock. 16 hedge funds in our database held 7.50% of Castlight’s shares on June 30

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On the following page we’ll see why QUALCOMM, Inc. (NASDAQ:QCOM) and Axcelis Technologies Inc (NASDAQ:ACLS) aren’t getting any love today.

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