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Why American Eagle Outfitters, Tyson Foods, and USA Technologies Slumped Today

Dan Caplinger, The Motley Fool

Wednesday was a good day on Wall Street, as reduced international tensions helped to give market participants new hope that recent conflicts might get resolved favorably. Major indexes rose roughly 1%, indicating widespread gains. Yet some stocks weren't able to join in the rally due to company-specific bad news. American Eagle Outfitters (NYSE: AEO), Tyson Foods (NYSE: TSN), and USA Technologies (NASDAQ: USAT) were among the worst performers. Here's why they did so poorly.

American Eagle falls to earth

Shares of American Eagle Outfitters dropped 12% after the apparel retailer reported its second-quarter financial results. Revenue climbed 8% to hit a record and rise above the $1 billion mark. However, comparable sales were up a more modest 2% from year-ago levels, and despite comps growth of 16% rise in the Aerie store concept, American Eagle's namesake stores saw comps fall 1% over the same period. The retailer said that seasonal issues related to the back-to-school season played a role in holding American Eagle back. The company's hopeful that the rest of the year will go well, but investors will have to wait to see if consumers help the retailer recover during the key holiday season.

Falling stock charts superimposed over digital map of the world

Image source: Getty Images.

Tyson makes cuts

Tyson Foods saw its stock sink 8% following its announcement that earnings for its fiscal fourth quarter wouldn't live up to prior expectations. The meat producer said that volatility in the commodities markets, costs of following enhanced food safety initiatives, a fire at one of its processing plants, and some other challenges all combined to hurt Tyson's prospects for fourth-quarter growth. CEO Noel White tried to stay positive, noting that the company's outlook for fiscal 2020 remains positive. However, it could take a while for investors to work through all the issues Tyson has before longer-term gains become possible -- especially given the competition that the meat company is now facing.

USA Technologies seeks more time

Finally, shares of USA Technologies plunged 22%. The payment and software services company said that it isn't likely to meet a Sept. 9 deadline to file all required financial reports with the U.S. Securities and Exchange Commission. USA Technologies is late on its fiscal 2018 annual report and on three subsequent quarterly reports, and it hopes to get current by Sept. 23. However, investors are scared that since the company is out of compliance with Nasdaq listing requirements, it might not be able to get everything done before the stock gets delisted.

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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com