Why Enphase Energy, Tupperware Brands, and Community Health Systems Slumped Today
Major benchmarks rose modestly on Wednesday, with investors not really having a big reaction to the Federal Reserve's latest decision to cut short-term interest rates by a quarter percentage point. Market participants largely expected the move, and the additional effort from Fed officials to suggest that this might be the last cut for a while didn't come as a big surprise, either. Yet as earnings season continued, some companies found themselves dealing with tough conditions that sent their share prices lower. Enphase Energy (NASDAQ: ENPH), Tupperware Brands (NYSE: TUP), and Community Health Systems (NYSE: CYH) were among the worst performers. Here's why they did so poorly.
Shares of Enphase Energy dropped more than 25% after the solar power inverter specialist reported third-quarter results that didn't live up to high expectations. Enphase's numbers certainly looked strong on their face, as revenue climbed more than 130% compared to last year's Q3 figures, and net income was more than eight times greater than it was 12 months earlier. Yet shareholders seemed to focus on relative weakness in Europe, as well as the uncertain future status of the investment tax credit for homeowners and solar energy project developers. Even with today's decline, though, Enphase's stock has more than tripled this year, reflecting the substantial growth it's still seeing.
Image source: Enphase Energy.
Source Fool.com