Why Intuitive Surgical, Walter Energy, and WD-40 Tumbled Today

The stock market soared on Wednesday, as initially strong sentiment from investors got an extra push higher after the minutes of the Federal Open Market Committee's March meeting showed greater willingness among policymakers to keep interest rates relatively low for a longer period of time. Yet even though the Dow, S&P, and Nasdaq all posted gains of 1% to 2%, Intuitive Surgical (NASDAQ: ISRG  ) , Walter Energy (NASDAQOTH: WLTGQ  ) , and WD-40 (NASDAQ: WDFC  ) were among the worst performers of the day, all falling by 5% or more.

Source: Intuitive Surgical.

Intuitive Surgical's 7% drop came after the robotic-surgery specialist warned on its first-quarter earnings last night. Intuitive Surgical expects that revenue will drop by almost a quarter from year-ago levels, missing what investors had expected by about 13%. Systems sales will be the biggest contributing factor, with a drop of almost 60%. The big question going forward will be whether Intuitive Surgical will get a boost in sales from its new da Vinci Xi system upgrade, which the FDA cleared after Intuitive Surgical's quarter ended. If that view from the FDA turns sentiment about the da Vinci around, then today's drop could be a huge buying opportunity for Intuitive Surgical.

Walter Energy fell 6%, with its coal-mining peers also suffering substantial gains after one analyst team downgraded a host of coal stocks this morning. The problem that analysts see as being particularly acute at Walter Energy is the poor environment for metallurgical coal. Although some other experts believe that thermal coal might finally be bottoming out, steel production hasn't yet picked up sufficiently to make a similar call for met coal. Given Walter's emphasis on metallurgical coal, it will have the hardest time getting through an extended period of weak pricing in the space.

WD-40 declined 6.5% after the industrial and household lubricant-maker released its fiscal second-quarter earnings report last night. Sales for the maker of the company's namesake product jumped 9% from the year-ago quarter, which was somewhat stronger than investors had expected, but earnings fell 1%. Strength in its Americas and Europe-Middle East-Africa-India segment led to double-digit sales increases in those areas, but a huge plunge of 21% in Asia-Pacific sales weighed on overall revenue growth. WD-40 cited high backlogs, poor currency impacts, and Chinese economic uncertainty for the region's woes. Yet investors apparently weren't satisfied with those results or its guidance for the remainder of the fiscal year, on which it repeated prior expectations for net sales and income.

3 stocks poised to be multibaggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Read/Post Comments (0) | 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.

Be the first one to comment on this article.

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: 2909597, ~/Articles/ArticleHandler.aspx, 8/27/2015 10:30:29 PM

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 1 hour ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

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

8/27/2015 4:00 PM
ISRG $515.57 Up +7.12 +1.40%
Intuitive Surgical CAPS Rating: ****
WDFC $84.55 Up +0.56 +0.67%
WD-40 Company CAPS Rating: *****
WLTGQ $0.08 Down -0.01 -7.06%
Walter Industries,… CAPS Rating: **