10 Companies That Missed Earnings Expectations

BOSTON (TheStreet) -- Earnings season has been a success so far, with 76% of S&P 500 companies exceeding analysts' earnings estimates. But not all companies beat consensus. Here are the 10 companies that fell short by the widest margins. The earnings per share tallies represent diluted earnings from continuing operations, excluding extraordinary items. 10. Zions Bancorporation ZION swung to a loss of 84 cents a share, missing analysts' expectation by 62%. The net loss widened to $113 million from a loss of $51 million a year earlier. Revenue declined 5.5% to $693 million. The operating margin remained in negative territory. Zions has $6 billion of cash and $3.1 billion of debt, equaling a debt-to-equity ratio of 0.5. Its stock has advanced 7% in the past year. It trades at a forward earnings multiple of 34, a 137% premium to the industry average. Its book value multiple of 0.5 and cash flow multiple of 2.3 reflect discounts of 57% and 58% to peer averages. Roughly 22% of analysts covering Zions rate its stock "buy." 9. Genzyme GENZ is a biotechnology company. It posted quarterly adjusted profit of 18 cents, missing the consensus by 63%. Genzyme swung to a GAAP net loss of $3.8 million, or 1 cent per share, from a profit of $188 million, or 68 cents, a year earlier. Revenue declined 12% to $1.1 billion. The operating margin shrank from 22% to 5%. Genzyme held $835 million of cash and $1.1 billion of debt, converting to a quick ratio of 1.4 and a debt-to-equity ratio of 0.2. Its stock has gained 25% in the past 12 months, beating indices. It sells for a forward earnings multiple of 18, on par with biotech peers. Around 24% of analysts covering Genzyme rate its stock "buy." 8. Snap-On SNA makes hand and power tools. Second-quarter profit increased 21% to $45 million, or 78 cents a share, missing researchers target by 65%. Revenue expanded 7.5% to $662 million. The operating margin remained steady at 13%. Snap-On had $431 million of cash and $923 million of debt, translating to a quick ratio of 1.6 and a debt-to-equity ratio of 0.7. The company's stock trades at a forward earnings multiple of 11 and a book value multiple of 1.9, 36% and 39% discounts to machinery industry averages. Of analysts following Snap-On, four, or 80%, rate its stock "buy" and one rates it "hold." A median target of $56.83 suggests a return of 41%. To read the rest, head over to TheStreet.com