NEW YORK (TheStreet) -- Michael Kors (KORS) , Mattel (MAT - Get Report) , Chesapeake Energy (CHK - Get Report) and Transocean (RIG - Get Report) were among the list of 15 worst-performing stocks in the S&P 500 last quarter.
TheStreet analyzed total return data of companies in the S&P 500 from June 30, 2014 to Sept. 30, 2014, compiled by Bloomberg. While the list is dominated by natural gas producers and offshore drilling companies, a variety of other sectors also are represented. The 15 worst-performing stocks all had double-digit losses for the quarter -- at minimum losses of roughly 20% -- whereas the S&P 500 gained 0.6% in the same time period.
Here are the 15 worst performers.
The Auburn Hills, Mich.-based company is one of the largest producers of turbocharge technology and its two largest customers are Ford (F) and Volkswagen. However, the stock started its descent following BorgWarner's softer-than-expected profit guidance for 2014, which it announced on July 31 along with second-quarter results. That said, the company, with a market cap of $12 billion, raised its profit forecast for the second time in six months to a range of $3.25-$3.35 a share, but that was still below the $3.36 a share analysts were expecting, according to Reuters.
14. FMC Corp
FMC announced plans to acquire Denmark's Cheminova for $1.8 billion in early September. The deal modifies its previously announced plans to separate into two independent companies -- FMC, which consists of FMC's Agricultural Solutions and Health and Nutrition, and FMC Minerals. It now plans to divest Alkali Chemicals, a division of the new FMC Minerals, by mid-2015.
13. Michael Kors
Luxury handbags and accessories retailer Michael Kors (KORS) had a total return of -19.47% for the three months through September.
Shares of Michael Kors have been having a rough time since June. Analysts have been concerned about the rising level of markdowns the luxury retailer has implemented in order to get rid of inventory and its effect on margins. Wall Street also is concerned about the eventual slowdown in growth trajectory at the company, which has been a star retailer over the past few years as it has expanded and taken share from its biggest rival Coach (COH) .
Walgreen (WAG) has seen a total return of -19.61% for the three months ended Sept. 30. The drugstore chain has been facing generic prescription drug price inflation and lower-third party reimbursements that have softened its pharmacy margins.
The toy maker has been losing share to rivals Lego and Hasbro (HAS) . Mattel said in July that second-quarter worldwide net sales fell 9%. Gross sales by the company's core brands were even worse, with Barbie sales down 15%, Hot Wheels sales down 2% and Fisher-Price sales down 17% in the second quarter. Only Mattel's sales of American Girl were positive for the quarter, rising 6%.
Last month, Mattel lost out to Hasbro for the rights to develop dolls based on Disney's (DIS) hit movie Frozen, The Associated Press reported.
10. Chesapeake Energy
The Oklahoma City-based natural gas and oil producer reported second-quarter adjusted earnings of 36 cents a share, 18% below consensus estimates for the period.
9. Range Resources
The Fort Worth, Texas-based natural gas producer reported second-quarter adjusted earnings per share of 36 cents, 10% below consensus estimates of 40 cents. Range Resources also announced in mid-June a secondary offering of 4.56 million shares at $87.50 for gross proceeds of $400 million. The company said it would use net proceeds to pay down debt.
8. Nabors Industries
Oil drilling and rig operator, Nabors Industries (NBR) , had a total return of -22.32% for the three months ended Sept. 30.
Last month, billionaire Alex Knaster's investment firm Pamplona Capital Management sold its 8.5% stake in the Bermuda-based company. Pamplona bought its stake two years ago after long-time Nabors CEO Gene Isenberg left the company, which caused the stock to drop. Nabors shares had risen 46% in 2014 as of Sept. 11, the date Pamplona's stake sale was picked up by the media. (The stock is currently up 17% for the year.)
Pamplona sold its stake for a roughly $250 million gain, nearly twice its original investment. The investment firm was Nabors' largest shareholder before the sale.
7. Noble Corp.
Offshore drilling contractor Noble Corp. (NE) had a total return of -23.16% for the three months ended Sept. 30. The company is the first of several drilling companies including Ensco (ESV) , Transocean (RIG - Get Report) and Diamond Offshore Drilling (DO - Get Report) listed in TheStreet's worst-performers list.
Offshore drilling companies are struggling as the oversupply of rigs is creating pressure on the outlook for the entire industry.
"Given the number of uncontracted newbuild deliveries, rigs rolling off contracts, and operator sublets, 2015 is shaping up to be an even more challenging market than 2014 for floating rigs," according to what Barron's wrote on Sept. 19 citing a research note by RBC Capital Markets' analyst Robert Pinkard. "We expect the market to be characterized by intense competition, falling dayrates, and rig retirements. This should lead to steady declines in earnings on average for the group through '16."
6. Southwestern Energy
Southwestern Energy (SWN) had a total return of -23.17% for the three-month period ended Sept. 30, 2014. The Houston energy company's second-quarter profit reported on July 31, fell 16%, hurt by beaten-down natural gas prices and higher operating costs, despite an 18% improvement in production over last year's quarter.
Continuing the offshore drilling pain, Ensco (ESV) had a total return of -24.49% for the three months ended Sept. 30.
Ensco CEO Carl Trowell addressed market concerns recently, telling analysts, "In terms of the deepwater market, a significant number of new drillships and semis are being built, and customers have tightened CapEx spending, which, together, are pressuring the supply/demand dynamics."
4. Genworth Financial
Financial services company Genworth Financial (GNW) had a total return of -24.71% for the three-month period. The company's long-term care insurance business has been struggling as Genworth and its competitors in the space miscalculated in early days of policy underwriting how much seniors would have to use the policies.
Operating income at Genworth's Long Term Care Insurance dropped to $6 million in the second quarter, compared to $26 million a year earlier as claims increased on older policies. Genworth said it is "conducting a comprehensive review of the adequacy of its claims service," adding that it expects to complete a review before announcing results for the third quarter.
Owens-Illinois (OI) had a total return of -24.80% for the three-month period ended Sept. 30.
Owens-Illinois, which sells glass container products to food and beverage companies, warned Wall Street last month that third-quarter earnings would decline by at least 5% to roughly 75 cents a share. Analysts had expected an average 88 cents a share in profit. Ohio-based Owens-Illinois suffered lower sales over the quarter, including a low single-digit drop in sales volume in North America and a double-digit decline in the Asia-Pacific.
Robert Baird had downgraded the Perrysburg, Ohio-based company to "neutral" from "outperform" on the belief that it is facing continued growth challenges.
"Nearly every company will still need to take on debt in 2015 to fund capex/dividends," said the Barron's article that cited RBC Capital Markets' analyst Robert Pinkard. "Asset sales are a possible source of funding for all companies, but we view Transocean as the most likely candidate to divest a meaningful number of rigs in 2015."
1. Diamond Offshore
Deepwater drilling operator Diamond Offshore Drilling (DO - Get Report) is the S&P 500's worst performer for the third quarter. The subsidiary of Loews (L) struggled in the second quarter, reporting on July 24 that net income and earnings were down by more than 50% from a year earlier. Quarterly revenue also fell by nearly 9% in the quarter. Diamond Offshore has seen a decline in the number of drilling contracts.
-Written by Laurie Kulikowski in New York.