What started out as a positive day following Tuesday’s devastation didn’t end that way. On Wednesday, the S&P 500 wiggled its way to a close of 2040.24, down 0.19% for the session.
Investors of Logitech International SA (USA) (NASDAQ:LOGI), Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Pilgrim’s Pride Corporation (NASDAQ:PPC), however, had it much worse. These three stocks were the leading losers today. Here’s what up-ended them.
Logitech International (LOGI)
Computer peripheral maker Logitech International isn’t as optimistic about 2015 and 2016 as investors were expecting. The company gave 2015 revenue guidance of $2.11 billion in sales and $185 million in operating income, and further said 2016’s top line was projected to only grow to $2.15 billion, with operating income expected to fall to $150 million.
At that point, plans to distribute $250 million worth of dividends to LOGI shareholders over the next three years became irrelevant. Shrinking operating income was something investors simply couldn’t look past.
It’s possible, even likely, the company is putting in a lowball number to set up earnings and sales beats in the foreseeable future. If that’s the case, the market was certainly fooled. LOGI shares were off more than 4% on Wednesday.
Valeant Pharmaceuticals (VRX)
Valeant Pharmaceuticals may not have a free and clear path to its purchase of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) after all, now that Endo International plc (NASDAQ:ENDP) has been rumored to have expressed an interest … in the form of a specific offer, that tops the one that Valeant Pharmaceuticals made in mid-February.
As of February, it looked like a done deal — the offer Valeant Pharmaceuticals made to Salix of $158 per share of SLXP was an agreed-upon figure from both parties. Endo International, however, offered the equivalent to $175 per share of SLXP in what sources say was a private e-mail from the new bidder.
Fearing that a bidding war may have been started, current owners of VRX shed their shares, sending the stock down 4% from the highs just achieved three weeks ago following the acquisition announcement.
Pilgrim’s Pride Corporation (PPC)
Pilgrim’s Pride Corporation may have been one of the worst losers today, but it was hardly alone. Tyson Foods, Inc. (NYSE:TSN) and Sanderson Farms, Inc. (NASDAQ:SAFM) were all more than a little deep in the red on Wednesday. The prod for the pullback was news that the Department of Agriculture had positively identified cases of the H5N2 flu strain, better known as avian flu, at a turkey farm in Arkansas.
Though such U.S. outbreaks tend to be rather quickly contained, some consumers avoid chicken for a while until it’s clear the risk of contagion has been quelled. That threat of weaker sales was enough to send PPC down 5% today. Shares of SAFM and TSN fell similarly.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
