Why Quiksilver (ZQK) Stock Tanked Today
NEW YORK (TheStreet) -- Quiksilver
Over the three months to April, the company recorded net losses of 15 cents a share, far wider than estimates for losses of 2 cents a share, according to analysts surveyed by Thomson Reuters. Revenue slid 10.4% year over year to $408.2 million, missing expectations for $448.6 million.
By market close, shares had tanked 41.1% to $3.41. Trading volume of 56.8 million shares was nearly 30 times its three-month daily average of 1.9 million.
TheStreet Ratings team rates QUIKSILVER INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUIKSILVER INC (ZQK) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."
- You can view the full analysis from the report here: ZQK Ratings Report