Why Beyond Meat, McDermott International, and Pfizer Slumped Today
Tuesday was a down day on Wall Street, but losses were relatively muted as investors tried to position themselves for some big news coming in the near future. The Federal Reserve began its two-day meeting on monetary policy, and most market participants expect the central bank to cut short-term interest rates on Wednesday. Yet not everyone thinks that'll be enough to keep the economy growing, especially if companies disappoint with their earnings results. Beyond Meat (NASDAQ: BYND), McDermott International (NYSE: MDR), and Pfizer (NYSE: PFE) were among the worst performers. Here's why they did so poorly.
Shares of Beyond Meat dropped 12% following the plant-based protein maker's second-quarter earnings report. Fundamentally, the company seemed strong, as revenue nearly quadrupled from year-ago levels. Yet even though adjusted pre-tax operating earnings reversed a prior-year loss with a modest gain, Beyond Meat also announced a secondary stock offering, with current shareholders selling 3 million shares and the company adding another 250,000 shares to the mix. The big share-price decline still leaves Beyond Meat with an impressive gain since its IPO, with the stock staying at triple its opening day price.
Image source: Beyond Meat.
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