A day after its worst single day in more than three months, the S&P 500 Index (^GSPC +0.80%) rebounded on encouraging housing data and testimony from Fed Chairman Ben Bernanke that signaled bond-buying measures would continue. Despite the positive macro news, today's three worst-performing S&P 500 stocks all had troubles with their own earnings, driving shares lower.
Logistics company Expeditors International of Washington (EXPD 0.61%) was Tuesday's biggest laggard, dropping 7.3% as earnings declined at a double-digit rate from the year before and air freight revenue disappointed big time. The $0.40 EPS figure came in below $0.43 EPS estimates, and with operating cash flows coming in nearly $90 million lower than the year-ago period, there wasn't much for investors to applaud today.
First Solar (FSLR 2.70%) shareholders were also unenthused Tuesday. The stock closed 4.2% lower during normal hours, but fell as much as 10% after hours. The dramatic decline was due to horrendous revenue projections for the first quarter. Wall Street expected $822 million in sales, yet the company projected between $650 million and $750 million for the period today. On top of that, First Solar missed earnings expectations for the fourth quarter and projected weak cash flow moving forward. In short, absolutely nothing to be excited about for shareholders today.
Lastly, natural gas utilities company ONEOK (OKE 0.78%) slumped 4% today, even though it beat earnings expectations. However, as the current valuation of a company is based on the expectations of its future success, ONEOK, like First Solar, was also the victim of lowered guidance. You just can't revise full-year earnings expectations from the $405 million-$500 million range to the $350 million-$400 million range and expect shares not to take a significant hit.
