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Why Enphase Energy, Tupperware Brands, and Community Health Systems Slumped Today

By Dan Caplinger - Oct 30, 2019 at 4:37PM

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Find out how financial results hurt these stocks.

Major benchmarks rose modestly on Wednesday, with investors not really having a big reaction to the Federal Reserve's latest decision to cut short-term interest rates by a quarter percentage point. Market participants largely expected the move, and the additional effort from Fed officials to suggest that this might be the last cut for a while didn't come as a big surprise, either. Yet as earnings season continued, some companies found themselves dealing with tough conditions that sent their share prices lower. Enphase Energy ( ENPH -0.79% ), Tupperware Brands ( TUP 4.14% ), and Community Health Systems ( CYH 6.03% ) were among the worst performers. Here's why they did so poorly.

Enphase goes dark

Shares of Enphase Energy dropped more than 25% after the solar power inverter specialist reported third-quarter results that didn't live up to high expectations. Enphase's numbers certainly looked strong on their face, as revenue climbed more than 130% compared to last year's Q3 figures, and net income was more than eight times greater than it was 12 months earlier. Yet shareholders seemed to focus on relative weakness in Europe, as well as the uncertain future status of the investment tax credit for homeowners and solar energy project developers. Even with today's decline, though, Enphase's stock has more than tripled this year, reflecting the substantial growth it's still seeing.

Person carrying tools at a worksite with solar panels and framework.

Image source: Enphase Energy.

Tupperware sees challenges

Tupperware Holdings suffered a 35% plunge in its stock price following its own third-quarter financial report. CEO Tricia Stitzel pointed to "challenging trends" that the household products specialist has seen in key markets including Brazil, China, the U.S., and Canada. That sent revenue down 14% from year-ago levels, and adjusted earnings got cut in half. Tupperware also revised its full-year outlook to account for the third quarter's weakness. As long as the health of the global economy remains in question, it'll be tough for Tupperware to mount a lasting comeback.

Community Health looks less healthy

Finally, shares of Community Health Systems finished lower by 17%. The hospital operator said that third-quarter revenue was down about 6% compared to where it was a year ago, and although losses narrowed year over year, Community Health still wasn't profitable. CEO Wayne Smith remains confident about the strategic moves the company has made lately, with roughly a dozen hospital divestitures and capital investments in building up parts of its business that it expects will contribute more toward improving results. Yet investors didn't feel entirely comfortable with Community Health's plans to swap near-term debt for eight- and nine-year notes carrying higher interest rates. At this point, there's a lot of uncertainty in the healthcare industry, and that's making it hard for investors to find the best investment choices in the space.

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Stocks Mentioned

Tupperware Brands Corporation Stock Quote
Tupperware Brands Corporation
$15.85 (4.14%) $0.63
Community Health Systems, Inc. Stock Quote
Community Health Systems, Inc.
$12.13 (6.03%) $0.69
Enphase Energy, Inc. Stock Quote
Enphase Energy, Inc.
$235.00 (-0.79%) $-1.86

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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