Photo Credit: Thomas Hawk

It’s no secret that Chipotle and Apple have been at the bottom of most investor’s lists after coming off quarterly earnings that featured double digit declines on the top and bottom line. With the upcoming season expected to be disappointing, more companies will start to see earnings and share prices suffer. They include Decker Outdoors (DECK), Skyworks Solutions (SWKS) and American Airlines (AAL). According to the Estimize data these names have been on the move, as witnessed by negative year over year growth estimates, heavy downward revisions and a history of missing expectations. The combination of these factors have typically led to a significant underperformance in the stock.

Deckers Outdoor (DECK) Consumer Discretionary – Textiles, Apparel & Luxury Goods

The unusually warmer weather and weak consumer spending environment hasn’t done Deckers Outdoors any favors. The parent company of UGGs, Deckers relies heavily on sales of the shearling lined boots to carry earnings quarter after quarter. For 2016, direct to consumer comparable sales decreased 1% primarily due to a decline in tourist traffic in the U.S. and weak sales growth in its ancillary brands. The company is already expecting to kick off fiscal 2017 on a poor note. In its Q2 analyst call, the company guided Q1 2017 sales to decline in the range of 20% to 25% with full year projections in negative territory. The Estimize community is equally bearish this quarter, calling for a $1.93 loss per share on $179.31 million in revenue. Compared to a year earlier earnings are projected to fall 35% with sales declining 16%. Earnings per share and revenue estimates have dropped by double digits since the company’s last report.

Skyworks Solutions (SWKS) Information Technology – Semiconductors

A tough macroeconomic environment and lower demand for chips has caused a broad decline in the semiconductor industry. It hasn’t helped that many of these companies provide key parts to Apple’s iPhone which can not seem to find its footing. Skyworks Solutions has unfortunately been on the wrong end of both. The company is currently best known for its mobile connectivity solutions found in popular handsets such as the iPhone or Samsung Galaxy S7. With the smartphone market approaching saturation, companies like Skyworks have seen growth rates drastically decline. Last quarter featured single digit growth for the first time in nearly 2 fiscal years. Fortunately, the company is well positioned to capitalize on the Internet of Things trends. In the meantime, earnings should remain a sore point for investors. The Estimize consensus is looking for earnings per share of $1.21 on 753.47 million in revenue, marking the first quarter of year over year declines in 2 years.

American Airlines (AAL) Industrials – Airlines

Unit revenue is perhaps one of the most important metrics in the airline industry. Typical airliners measure this as passenger revenue per available seat mile. American Airlines, along with United, produces the worst unit revenue amongst in the industry with no sign of improvement. Recently the company confirmed that its PRASM metric is expected to fall in the range of 6 to 8% in the second quarter. American Airlines continues to feel pressure from the strong U.S. dollar, competition from discount airliners and muted demand following the recent terror attacks around the world. Weak oil prices, which had previously offset a portion of its problems, are slowly reversing themselves with crude and brent nearing their highs for 2016. While budget airlines have prevailed through the volatility, it doesn’t appear likely that American Airlines will in the near future. The Estimize community is looking for earning per share of $1.64 on $10.31 billion in revenue, a 35% decline on the bottom and 4% on the top. Shares of the airline are down 25% in the past 12 months, and the stock typically falls by 1% in the days following a report.