Companies led by the three CEOs who left a presidential advisory council this week all have share prices that have badly underperformed their peers this year, CNBC research shows.
Intel CEO Brian Krzanich, Merck CEO Kenneth Frazier and Under Armour CEO Kevin Plank have all resigned from the American Manufacturing Council since deadly violence erupted during clashes between protesters over the weekend in Charlottesville, Virginia.
The three corporate leaders all issued statements that either cited the violence in Charlottesville, a disaffection with American politics, or a condemnation of hatred as reasons for their departure from the advisory group.
Yet their decisions also call attention to their respective company share prices, and all have had a rough time during the Trump administration.
Intel shares, for example, are down about 1 percent for the year, while the Dow Jones Industrial Average of which is a component, is up 11.27 percent as of Tuesday morning.
Wall Street analysts who rate Intel’s stock expect the chipmaker to post a 3 percent rise in sales this year, while earnings per share are seen climbing to $3.01, up from $2.72 in 2016, according to Thomson Reuters data.
Intel shares slipped in early trading Tuesday, putting them in the red for the year.
Merck, also a Dow component, has seen its shares rise 4 percent this year, or less than half the gain in the Dow.
Its sales are expected to tick up 1.2 percent this year, while profit is seen rising to $3.87 a share, versus $3.78 last year, based on analysts’ consensus earning forecast.
Merck shares were slightly lower early Tuesday.
Under Armour has fared even worse this year, plunging 39 percent year-to-date, versus a 10 percent rise in the Standard & Poor’s 500 Index.
The company’s share-price drop began shortly after Trump took office in late January, thanks to a fourth-quarter earning report and a forecast that disappointed Wall Street.
Under Armour shares fell more than 2 percent in early trading Tuesday.
Source: Tech CNBC
The CEOs who quit Trump's council this week all have lagging stocks