Thursday was a volatile day on Wall Street, but markets generally turned higher by the end of the session. Despite ongoing concerns about the future direction of the U.S. economy, there are still a number of factors pointing toward continued expansion and a low chance of a recession in the immediate future. Even so, bad news hit some individual companies, sending their shares down. GoPro (GPRO 3.32%), AngioDynamics (ANGO 5.05%), and Resources Connection (RGP 3.49%) were among the worst performers. Here's why they did so poorly.
GoPro warns on new camera delays
Shares of GoPro sank 19% after the action-camera maker warned that it would suffer production delays for one of its new product releases. The company had just announced its HERO 8 Black camera for the holiday season, but a late-stage hiccup in the process means that GoPro will have to ship the new product in the fourth quarter rather than in the third quarter. As a result, GoPro cut its revenue growth projections by 3 percentage points, setting a new range of just 6% to 9%. Given how optimistic investors were about the release, news of the delay crushed morale for many of those following the stock.
AngioDynamics makes a buy
AngioDynamics saw its stock drop 14% after the medical device maker released its latest financial results and announced an acquisition. Revenue rose just 3% year over year, although the company cited ongoing progress in a study for its NanoKnife product line for use in treating patients with pancreatic cancer. AngioDynamics also said it had acquired Eximo Medical in a deal that will pay Eximo $46 million in cash, with milestone payments of up to $20 million more. Eximo's products will boost AngioDynamics' overall portfolio, but investors are concerned about how the costs of launching those products will hurt earnings in the short run.
Resources Connection gets dumped
Finally, shares of Resources Connection fell 10%. The consulting company said that revenue in its fiscal first quarter was down almost 4% from year-ago levels, resulting in a double-digit-percentage decline in net income. CEO Kate Duchene explained that the consultant "engaged in decisive actions" that should lead to better financial performance over the long run, including an acquisition, a sale, and a closure of one of its offices. Resources Connection hasn't made a lot of progress toward sustained growth lately, and investors appear increasingly impatient to see better results from the company.