Why Stryker, Ultragenyx Pharmaceutical, and La-Z-Boy Slumped Today
Major benchmarks trended downward Wednesday, taking a break from the rally that had boosted stocks in the previous session. Investors seemed uncertain about President Donald Trump's plans to abandon the North American Free Trade Agreement (NAFTA). Among the worst performers of the day were Stryker Corporation (NYSE: SYK), Ultragenyx Pharmaceutical (NASDAQ: RARE), and La-Z-Boy (NYSE: LZB). Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Stryker Corporation fell 5% today after the medical device company announced a voluntary recall of specific lots of its oral care products and instituted a temporary shipping hold on those products, which account for half of the revenue from its Sage Products segment. This follows a previous warning by the U.S. Food and Drug Administration (FDA) last month regarding these issues. Stryker admitted that there was the possibility of cross-contamination that could cause minor irritations and allergic reactions, but it was not aware of any serious safety issues. The company severed ties with the responsible third-party supplier and expects to begin shipping the products again next month. As a result of these actions, the company has reduced its expectations for the year to the lower end of its previously issued guidance, which included earnings guidance of between $6.45 and $6.55 per share.
Image source: Getty Images.
Source: Fool.com