Thursday was another day in which the stock market saw some ups and downs during the session. Those who focus solely on the Dow would have thought that the trading session was unquestionably positive, but large gains among some of that average's more influential components hid weaker performance in the broader market that left the Nasdaq Composite in the red for the day. In addition to some concerns about the current global macroeconomic situation, some individual companies took hits from business-specific news. Range Resources (NYSE:RRC), Horizon Global (NYSE:HZN), and Sears Holdings (NASDAQ:SHLDQ) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Range Resources makes plans for the future
Shares of Range Resources fell 10% after the company released information about its capital budget, outlook, and proved reserves. The natural gas producer said that it had an increase of 26% in proved reserves to 15.3 trillion cubic feet-equivalent, but investors seemed disappointed by its decision to spend $941 million on capital projects to boost production by an expected 11% in 2018. Most of Range Resources' spending will go toward the Marcellus shale play in Pennsylvania, with particular attention to the southwestern part of the formation. Moreover, Range Resources said it had hedged about 70% of its natural gas production at a price of just over $3, which limits the company's ability to participate in any price gains going forward. After a terrible year in 2017, Range Resources' decision could prevent shareholders from enjoying the full fruits of the company's favorable outlook in boosting production through 2022.
Horizon gets jackknifed
Horizon Global stock plummeted 29% after the towing and trailer specialist issued a warning about its sales and operating earnings for the year. Horizon now expects sales to rise between 37.2% and 37.6%, down from previous guidance for 38% to 41% growth, and adjusted earnings will be $0.16 to $0.18 per share lower than previously expected, setting a new range of $0.88 to $0.96 per share. A host of issues weighed on Horizon, including delivery delays related to switching to a new distribution facility, higher material costs, and sales shortfalls in the Americas region. CEO Mark Zeffiro tried to remain optimistic about 2018, but investors weren't pleased about the challenges the business faced in 2017.
Sears sinks again
Finally, shares of Sears Holdings finished down 11%, adding to an 8% decline Wednesday and falling to the stock's lowest level in decades. The ailing retailer has been working to shed assets and manage debt while continuing to operate, but recent events have raised concerns that those efforts might not be able to last much longer. In particular, a debt exchange trading existing conventional bonds for convertible bonds could help Sears avoid having to repay cash at maturity, but at the cost of diluting remaining shareholders even further. Given poor performance during the just-ended holiday season, it'll be hard for Sears to hold its current course for the foreseeable future.