Tech Stocks Slump, SanDisk Worst Performer (SNDK, YHOO, AYI, NOOF, ZNGA, HEAT)
Technology stocks were under heavy selling pressure with the broader markets. Various chip makers’ shares slid with SanDisk Corporation (NASDAQ:SNDK), after the company lowered its revenue outlook.
SanDisk Corporation (NASDAQ:SNDK) shares fell 9.51% to $45.29 in the early hour. The company is trading on an above average volume of 16.32 million shares, 4x times its average volume. The company cut its first quarter revenue outlook, owing to weaker than expected pricing and demand. The company now expects first quarter total revenue of about $1.2 billion, from a previous forecast of $1.30 billion to $1.35 billion. Analysts expect the company to report revenues of $1.34 billion for the quarter.
Yahoo! Inc. (NASDAQ:YHOO) stock fell 0.69% to $15.07 in the early hour after the company said it is taking important steps to reshape the company for the future, that would help in boosting the shareholder value. As a result, the company would axe around 2,000 people who would be notified of job elimination or phased transition.
Acuity Brands, Inc.(NYSE:AYI) stock declined 6.94% to $59.23 in the morning hour on an unusual volume after the company’s second quarter profit declined hurt by a special charge, despite higher net sales. The company’s second quarter net income was $19.5 million, as against $19.9 million in the year ago period. Net sales climbed 10% to $457.7 million from $416.1 million last year. Analysts expected earnings of $0.62 per share on revenue estimate of $455.42 million.
New Frontier Media, Inc. (NASDAQ:NOOF) shares climbed 3.75% to $1.66 in the early hour. The company’s special Committee of the Board of Directors has retained Avondale Partners, LLC, as its financial advisor to examine and consider a broad range of strategic alternatives that have the potential to maximize shareholder value.
Zynga Inc (NASDAQ:ZNGA) shares climbed 2.36% to $12.58 in the morning hour. The 52 week trading range for the company is $7.97 – $15.91. The company yesterday announced that it has completed an underwritten public offering of an aggregate of 49,414,526 shares of its Class A common stock, including 6,445,373 shares of Class A common stock sold at a price to the public of $12.00 per share.
SmartHeat Inc (NASDAQ:HEAT) stock soared 66.66% to $8.76 in the early hour. The company is currently trading on an unusual volume of 6.85 million shares, over 60x times its average daily traded volume. The company posted a fourth-quarter loss of $9.6 million, which included $9 million in write-downs. Revenue declined to $33.7 million in the latest quarter as China’s fiscal tightening measures pressured the company’s top line. The company said a slowdown in the end-market demand would be temporary and also promised a rigorous program of cost cutting to maintain control of its budget.