Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Nutrisystem, Catamaran, and Swift Energy Tumbled Today

The stock market broke out of its holding pattern Thursday, posting a solid advance of about half a percent and sending the S&P 500 to its highest close ever. Reduced levels of nervousness about the winter-induced economic slump in the U.S. helped boost stocks' prospects, especially with help from the Senate testimony of new Fed chief Janet Yellen. But none of those tailwinds helped Nutrisystem (NASDAQ: NTRI  ) , Catamaran (NASDAQ: CTRX  ) , or Swift Energy (NYSE: SFY  ) avoid steep losses today after announcing disappointing news.

Nutrisystem declined 10% despite a fourth-quarter earnings report that included year-over-year revenue growth and a reversal of last year's loss with a modest gain. Yet even though the weight-management company projected earnings for the 2014 year of $0.51 to $0.61 per share, up about 25% to 50% from 2013's final results, investors had wanted about 65% earnings growth on 14% sales gains. As a result, they're reining in their expectations, and the stock dropped as a result. With increasing competition in the weight-management space, moreover, Nutrisystem will have to work hard to maintain even that level of revenue growth in the future.

Catamaran fell 11% on a similar forecast for smaller 2014 profits than investors had expected to see. The pharmacy-benefits management provider saw sales jump 36% for the quarter, as net income soared 75%. Yet investors weren't entirely comfortable with Catamaran's earnings projections for 2014 of between $2.04 and $2.19 per share on an adjusted basis, with the figures suggesting that the PBM's margins might come under more pressure in the year to come. Pharmacy benefits managers have been a key component of cost-saving measures for the health-care industry lately, but shareholders clearly fear that Catamaran's impressive run might be ending.

Swift Energy dropped 16% after the small oil and gas company disappointed investors with its fourth-quarter results. Swift announced a loss stemming from a large writedown of its energy assets, but even adjusting for those figures, net income dropped by almost half from the year-ago quarter. For the full year, Swift only managed to increase production by about half a percent, and the company said it wasn't happy with the performance it has gotten from its Artesia Wells area assets. With revenue falling 8% on lower production, Swift needs to find ways to get itself growing again to avoid even further declines in the future.

Get more energy into your portfolio
Swift didn't do well today, but finding better plays while historic amounts of capital expenditures are flooding the energy industry will pad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 28, 2014, at 5:34 AM, GCF007 wrote:

    3 stocks for the American energy bonanza, BWP down over 50% in a month...what the heck?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2858525, ~/Articles/ArticleHandler.aspx, 9/3/2015 6:52:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
CTRX $0.00 Down +0.00 +0.00%
Catamaran CAPS Rating: *****
NTRI $27.92 Up +0.45 +1.64%
NutriSystem, Inc. CAPS Rating: **
SFY $0.58 Up +0.01 +1.22%
Swift Energy Compa… CAPS Rating: **