U.S. equities are rallying on Thursday, pushing the S&P 500 once more away from its 200-day moving average thanks to the ongoing flow of positive earnings results.
Facebook, Inc. (NASDAQ:FB) is in one of the biggest earnings winners today, up 9.4% to hit its best level in six weeks thanks to better-than-expected earnings and double-digit user growth. There were solid results form Visa Inc (NYSE:V) and Advanced Micro Devices, Inc. (NASDAQ:91抖阴) as well, pushing the stocks up 5.1% and 11.6% respectively.
But not all areas of the market are participating in this earnings season rally. Here are four stocks that are Thursday’s earnings losers:
Thursday’s Earnings Loser #1: AT&T (T)
AT&T Inc. (NYSE:T) did not have a good day. Following disappointing earnings, T shares are dropping hard, down 5.5% in mid-day trading returning to lows not seen since November.
Earnings of 85 cents per share missed estimates by three cents on a 3.4% drop in revenues. The top line was pressured by a decline in wireline services, domestic video and wireless service. Analysts at Hilliard Lyons downgraded T shares to neutral as a result.
The company will next report results on July 25 after the bell.
Thursday’s Earnings Loser #2: American Airlines (AAL)
American Airlines Group Inc (NASDAQ:AAL) shares are down 4.8% as I write this, recovering from an even steeper loss earlier in the session, after issuing disappointing guidance.
Earnings of 75 cents per share beat estimates by four cents on a 5.9% rise in revenues. Revenue per seat mile increased for the sixth consecutive quarter.
But looking ahead to the full fiscal year, the company lowered its earnings-per-share estimate to $5.00 to $6.00 from $5.50 to $6.50 previously. Analysts were looking for $5.76.
Thursday’s Earnings Losers #3: Raytheon (RTN)
Raytheon Company (NYSE:RTN) is down 1.4% in trading testing lows not seen since March, falling further below their 50-day moving average.
The company reported earnings of $2.20 per share, nine cents ahead of estimates, on a 4.4% rise in revenues. Forward guidance was good too.
But revenues were only in-line with estimates, which seems to have disappointed the whisper expectations on the Street.
Thursday’s Earnings Losers #4: Altria Group (MO)
Altria Group Inc (NYSE:MO) was also down after earnings, despite meeting estimates.
MO shares are down 2.4% in mid-day trading, falling back to lows not seen since early 2016. This caps a decline of more than 28% from the highs set in the summer of 2017.
The company reported earnings of 95 cents per share, four cents ahead of estimates on a 1.8% rise in revenues. Guidance was reaffirmed and revenues were in-line with estimates, both of which disappointed investors.
On its post-earnings call, the company wondered if the recent rise in gas prices dinged sales.
Anthony Mirhaydari is founder of the (ETFs) and (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
