Brenda O’Farrell
Investing.com – Shares of Winpak Ltd. (TSX:WPK) were down more than 10% in afternoon trading Wednesday, the worst performing stock on the S&P/TSX Composite so far on the day.
The downward pressure stems from the Winnipeg company’s pour performance as outlined by its fourth-quarter results revealed on Tuesday.
The packaging manufacturer reported $217.5 million in revenue, translating into a fourth-quarter earnings per share of $0.41, below estimates of an EPS of $0.44.
Shortly after reporting, CIBC World Market analyst Scott Fromson reportedly downgraded his rating on the stock to “neutral” from “outperformer.”
According to reports, Fromson dropped his target price for Winpak to $55 from $49. At 2:30 p.m. Eastern, the stock was trading at $441.54.
Winpak specializes in packaging, primarily for perishable foods, beverages and a variety of health-care applications.
In the last year, Winpak shares have gained 10.5%.