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Why These Stocks Are Getting Killed Thursday

NEW YORK (TheStreet) -- Weak quarterly and full-year guidance weighed on Fusion-IO (FIO), Symantec (SYMC - Get Report), Xerox (XRX - Get Report) and TriQuint Semiconductor (TQNT), sending prices plummeting.

Fusion-IO

Fusion-IO has lost a quarter of its share value after issuing lower-than-expected second-quarter guidance. Shares have dropped 26% to $9.80 early Thursday afternoon. 

The flash storage company reported a first-quarter loss of of $27.9 million, or 7 cents a share, on revenue of $86.3 million. Analysts surveyed by Thomson Reuters anticipated a loss of 11 cents a share on $84.7 in revenue. In the year-ago quarter, the company posted earnings of $3.9 million on revenue of $118.1 million. Though the first quarter beat expectations, projected second-quarter revenue was disappointing as the company said it would see only a slight quarter-on-quarter increase.

The Salt Lake City-based company also announced Chief Financial Officer Dennis Wolf's exit to pursue another opportunity and sales chief James Dawson's retirement.

Lazard Capital Markets reiterated its "buy" rating on Fusion-IO, though downgraded its price target to $14 from $17. "There's a strong technology story here that continued to be levered to rapidly growing end markets but is being dragged down by lumpiness," Lazard wrote in a research report. UBS also kept its "buy" rating, while lowering its price target to $15 from $18.

TheStreet Ratings team rates Fusion-IO Inc as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about its recommendation:

"We rate Fusion-IO Inc (FIO) a SELL. This is driven by a number of negative factors, 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 deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

Symantec

Security software company Symantec also projected light guidance for the current quarter, while reporting mixed second-quarter results. The maker of Norton anti-virus software recorded earnings of 50 cents a share on revenue of $1.64 billion. Analysts surveyed by Thomson Reuters projected profit of 44 cents a share on $1.685 billion.

For the third quarter ending Dec. 27, the company expects earnings of 41 cents to 43 cents a share, compared to previous estimates of 51 cents. Revenue is expected between $1.63 billion and $1.67 billion, lower than an estimated $1.69 billion. For full-year 2014, the Mountain View, California-based company said revenue would likely decline 3%-4% in constant currency.

MKM Partners, though maintaining its "buy" rating, lowered its price target to $26 from $29 "as the sales force reorganization proved much more disruptive than we had been expecting." The investment firm expects to see improvement in productivity after first quarter 2014. UBS, meanwhile, restated a "buy" and decreased its price target to $27 from $28.

Shares were 12.1% lower to $21.65 on Thursday. 

TheStreet Ratings team rates Symantec Corp as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about its recommendation:

"We rate Symantec Corp (SYMC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had subpar growth in net income."

Xerox 

Xerox lower its guidance for the fourth quarter on restructuring charges, causing shares to drop 8.6% to $9.81. The printer company said earnings for the fourth quarter will be within the range of 28 cents to 30 cents a share. Analysts surveyed by Thomson Reuters had expectations of 33 cents a share.

For the third quarter, the Connecticut-based tech company reported earnings of 26 cents a share, 1 cent higher than analyst expectations, and revenue of $5.26 billion. Xerox also reduced its full-year earnings forecast to between $1.08 and $1.10 a share, from the range of $1.09 to $1.15 a share previously estimated.

TheStreet Ratings team rates Xerox Corp as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:

"We rate Xerox Corp (XRX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had subpar growth in net income."

TriQuint Semiconductor

Chipmaker TriQuint also forecast guidance which disappointed analysts. The Oregon-based company, which manufactures radio frequency chips, said it expects to earn 12 cents to 14 cents a share on $260 million to $270 million in revenue in the current fourth quarter. Analysts surveyed by Thomson Reuters had expectations of 19 cents a share on $280.5 million in revenue.

For the third quarter ended Sept. 28, TriQuint recorded earnings of 16 cents a share on revenue of $250.8 million, better than analysts' expectations of 10 cents a share on revenue of $250.1 million.

Shares were 15.2% lower to $7.05 early Thursday afternoon.

D.A. Davidson & Co analyst Thomas Diffely reiterated his "buy" rating and $10 price target, stating the company is a "multi-year growth story."

"In the near-term TQNT should continue to benefit from its increased presence in the updated iPhone 5S and 5C, offset somewhat by diminished business with Blackberry," he wrote in his research report. "Longer-term, its strong positioning in the advanced filter market should drive significant growth (potentially 15%-20% per year for several years)."

TheStreet Ratings team rates TriQuint Semiconductor Inc as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about its recommendation:

"We rate TriQuint Semiconductor Inc (TQNT) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

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SYM TRADE IT LAST %CHG
FIO $0.00 0.00%
TQNT $70.07 -1.95%
SYMC $24.24 0.00%
XRX $12.89 0.00%
AAPL $124.75 0.00%

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