Stocks stayed in the green on Monday, bouncing back from sharp losses early in the session as investors awaited awaited a decision from President Trump on whether to impose new trade tariffs on China later this week.
MiMedx's executive turnover
Shares of MiMedx Group plummeted 38.5% after the biopharmaceutical company announced a slew of executive leadership and business changes amid the ongoing investigation into its business practices. Pete Petit has resigned as My MiMedx's chairman and CEO -- though he remains a director on the company's board -- while Chief Operating Officer and board member Bill Taylor simultaneously resigned from both of his respective roles.
The company further unveiled a number of initiatives to "promote accountability and strengthen oversight," including a newly formed ethics and compliance committee, new chief accounting officer and internal auditor positions, and a review of its Sarbanes-Oxley and other internal control policies.
Finally, MiMedx confirmed that would need to restate its previously issued financial statements for fiscal years 2012 through 2016, as well as for the first three quarters of 2017. MiMedx also continues to cooperate with investigations being performed by the SEC and U.S. Department of Justice.
Of course, these changes are almost certainly for the better, and MiMedx is doing its best to continue focusing on executing its business strategy. But it shouldn't come as a surprise to see more investors heading for the exits today.
Core Labs' reduced guidance
Core Laboratories stock fell 10.7% after the oil-services specialist reduced its second-quarter outlook following delays in the recovery of international field development activity for its reservoir description segment. Core Labs now expects second-quarter 2018 revenue will range from $174 million to $175 million -- up only slightly from its seasonally slow first quarter -- which should translate to earnings per share of $0.57 to $0.59.
If that wasn't enough, Core Labs predicted its third-quarter results will likely be similar to its previous second-quarter guidance, which called for revenue of between $177 million and $179 million, and earnings per share of $0.64 to $0.66. Both ranges were well below consensus estimates for third-quarter earnings of $0.74 per share on revenue of $187 million.
Nordstrom goes out of style on Wall Street
Finally, after falling more than 5% early in the day, shares of Nordstrom ultimately closed down 2.1% after Cowen analyst Oliver Chen downgraded the department store chain.
Chen reduced his firm's rating on Nordstrom stock from outperform to market perform and lowered his per-share price target from $56 to $51. To justify his relative bearishness, Chen noted that same-store sales at Nordstrom Rack -- the chain's off-price division -- have fallen for the past year and a half, bolstered only by strength in digital sales. Chen also worries that Nordstrom will need to close additional underperforming physical locations over the long term.
Given this tempered enthusiasm, it's hard to blame some investors for taking a step back from Nordstrom today.