Why American Outdoor Brands, Innovative Industrial Properties, and Alexion Pharmaceuticals Slumped Today
Friday was a relatively quiet day on Wall Street, with major indexes staying relatively close to where they began the session. Investors are getting conflicting readings on the prospects for economic growth going forward, with some signs pointing to continued strength while others call for caution. Despite the relatively calm market, some stocks suffered significant losses. American Outdoor Brands (NASDAQ: AOBC), Innovative Industrial Properties (NYSE: IIPR), and Alexion Pharmaceuticals (NASDAQ: ALXN) were among the worst performers. Here's why they did so poorly.
Shares of American Outdoor Brands plunged 22% after the maker of firearms and outdoor equipment reported disappointing fiscal first-quarter financial results. Revenue fell 11% from the previous year's period, sending adjusted net income down by more than 80%. CEO James Debney pointed to "ongoing softness in the firearms market" that put downward pressure on the company's sales, but efforts to diversify American Outdoor Brands' business continued to gain momentum. Even so, the company has a significant supply chain in China, and so it'll be hard for it to avoid tariff impacts without taking more dramatic and potentially costly action.
Image source: American Outdoor Brands.
Source Fool.com
