Wednesday was a strong day on Wall Street, and major benchmarks posted solid gains of around 1%. Market participants were generally happy about oil prices moving back into the $70s, hoping for a rebound in hard-hit areas of the country that had taken advantage of the triple-digit oil prices of the early 2010s by dramatically ramping up production of shale plays and similar opportunities. Yet even with the generally favorable mood, some stocks weren't able to join the rally. Kinross Gold (NYSE:KGC), Weibo (NASDAQ:WB), and Middleby (NASDAQ:MIDD) were among the worst performers on the day. Here's why they did so poorly.
Kinross gets tarnished
Shares of Kinross Gold fell 11% after the gold mining company announced its first-quarter financial results. At first glance, the news seemed good, with Kinross saying that revenue rose 13% from year-ago levels as the miner took advantage of higher sales volumes and better selling prices. Adjusted earnings quintupled from the first quarter of 2017. Yet investors weren't entirely pleased with Kinross Gold's falling production, which was down about 18,000 gold equivalent ounces to 654,000. Even so, the decline unfairly discounts the progress that Kinross has made in managing its expenses, with all-in sustaining costs falling more than $100 per ounce to $846. If the miner can address any production issues, then a rebound could come in short order.
Weibo falls despite strong growth
Weibo stock dropped 14% in another example of a company that had impressive results. The Chinese social media company saw first-quarter revenue climb by more than three-quarters from year-earlier levels, and adjusted earnings almost doubled over the same period. Yet even in combination with encouraging guidance for the future, Weibo wasn't able to satisfy growth-hungry investors, who had apparently wanted even better gains. With the stock having more than doubled over the past year, a pullback was somewhat overdue, but most agree that with more than 410 million monthly active users, Weibo will remain a force to be reckoned with for the foreseeable future.
Middleby loses power
Finally, shares of Middleby plunged 17.5%. The maker of kitchen equipment saw subpar revenue growth of just 10% in the first quarter of 2018, and net income unexpectedly fell from year-ago levels. Organic sales dropped significantly, and Middleby felt the weakness across its range of segments. CEO Selim Bassoul thinks that one-time factors were responsible for the disruptions to the business, and he believes that innovative new product launches will help build positive momentum again. Yet some of the headwinds Middleby identified could last for several more quarters, and that could make a quick rebound for the kitchen equipment specialist a lot more difficult.