Why 3D Systems, Envision Healthcare, and Check Point Software Technologies Slumped Today
Earnings reports and policy optimism have been the driving factors on Wall Street over the past month, and many investors see no signs of that momentum dissipating any time soon. The potential for Republicans in Congress to cut taxes on businesses continued to stoke stock market gains, and with the majority of companies having produced reported favorable earnings results for last quarter, market participants are pleased that there's fundamental business growth underpinning the rise that the broad market has seen lately.
Yet no matter how good the market trends are, there are always some individual companies facing bad news that sends their stocks plunging. On a mixed Wednesday for the major indexes, 3D Systems (NYSE: DDD), Envision Healthcare (NYSE: EVHC), and Check Point Software Technologies (NASDAQ: CHKP) were among the worst performers. Below, we'll look more closely at these stocks to tell you why they did so poorly.
3D Systems plunged 24% in the wake of the third-quarter financial results the 3-D printing specialist reported late Tuesday. Revenue fell 2% compared to the year-earlier quarter, and it swung to an adjusted net loss on the bottom line for the period. Gains in revenue from services weren't enough to offset larger declines in product sales, and without the acquisitions that 3D Systems has made over the past year, the company's performance would have been even weaker. CEO VJ Joshi said that organizational and operational changes should bring long-term success, but the company's withdrawal of guidance for 2017 didn't inspire confidence among shareholders.
Source: Fool.com
