Markets were surging on Thursday, with all major U.S. stock indexes trading up at least 0.1%, and oil and gold registering substantial gains. However, a few stocks, including Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Jabil Circuit, Inc. (NYSE:JBL), Horizon Pharma PLC (NASDAQ:HZNP), Endo International plc – Ordinary Shares (NASDAQ:ENDP), and Guess?, Inc. (NYSE:GES) have registered substantial losses. So, let’s take a look into the events driving these declines, and into what the hedge funds in our database think about the companies involved.
Our research determined that following the small-cap stocks, that hedge funds are collectively bullish on, can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
Let’s start with Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), whose stock dipped after the opening bell, but has recovered since then and is currently less than 1% in the red. On Wednesday evening, the company posted fourth-quarter earnings of $0.11 per share, $0.05 above consensus, on revenue of RMB2.87 billion ($440 million), up 50.3% year over year, and RMB60 million ($9.27 million) ahead of estimates. However, guidance for the first quarter came in quite light. Management said it expects revenue to grow between 75% and 80%, but this figure would include, for the first time ever, results from the merger with Qunar Cayman Islands Ltd (NASDAQ:QUNR). So, a few analysts decided to break down the number, and came up with 30% to 35% growth for Ctrip. And, while this seems impressive, it still implies a marked deceleration from the company’s recent rates.
Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is trading down about 9.6% year-to-date, having underperformed the market. Among the funds we track, Ken Fisher‘s Fisher Asset Management disclosed ownership of 8.83 million shares of the company, valued at more than $409 million at the end of 2015.
Next up is Jabil Circuit, Inc. (NYSE:JBL), whose shares have declined by around 10% on Thursday, on volume four times above average. The drop comes on the back of financial results for the second fiscal quarter, which included EPS of $0.57, $0.03 below the consensus estimate, on revenue of $4.4 billion, $100 million lower than expected. Guidance for the current quarter was also disappointing and included revenue in the range of $4.1 billion to $4.3 billion and EPS between $0.12 and $0.18, well below consensus estimates of $4.75 billion and $0.51, respectively. CEO Mark Mondello said that “reduced demand in mobility” was behind such weak guidance.
Jabil Circuit, Inc. (NYSE:JBL) lost 14.5% over January, but has recuperated 10.3% since the beginning of February. However, today’s drop takes the year-to-date loss to over 15%. Ron Gutfleish‘s Elm Ridge Capital was one of the investors that avoided the decline as it sold all of its 924,090 shares during the fourth quarter of 2015.