Stocks made a valiant effort to bounce back from a weak open, up as much as 0.3% at one point in the middle of the day. By the time the closing bell rang though, unrest in the Middle East was too much cause for concern. The S&P 500 finished the day down 0.24%, while that same unrest sent crude prices up 4.3% to $51.30 per barrel.
SanDisk Corporation (NASDAQ:SNDK), Winnebago Industries, Inc. (NYSE:WGO) and Novavax, Inc. (NASDAQ:NVAX), meanwhile, were the worst of the worst. Weak Q4 results and/or weak Q1 outlooks get the bulk of the blame for their demise on Thursday.
It wasn’t exactly “news” at this point, but the market is still displeased Novavax is raising money by issuing shares. Traders protested the decision by dumping NVAX en masse, with today’s 5% plunge bringing the week-to-date total loss to 20%.
The company is aiming to raise $165 million by issuing 24.1 million shares of NVAX at a price of $7.25 per share. The stock closed just a bit above that level today.
The money is to be used to complete the development and trials of some of the lead drug-development candidates, and Novavax expects the offer to close before the end of the month.
Winnebago Industries (WGO)
RV manufacturer Winnebago Industries fell short of expectations last quarter on the top and bottom line. The company earned 30 cents per share of WGO stock, versus estimates of 38 cents. Revenue-wise, sales of $234.5 million rolled in less than the estimated $241.6 million for Winnebago.
Overall revenue was up 2.4% on a year-over-year basis, but income of 35 cents per share of WGO was short of last year’s 35 cents.
The company explained that rising operating, legal, and maintenance costs were the culprit for thinning margins. The market wasn’t sympathetic though, sending WGO shares down 14%.
Traders may have taken the ball and run a bit too far with it. Then again, it’s not like SanDisk did anything to help its cause.
On Thursday, SNDK shares cratered to the tune of 18% after the flash memory manufacturer lowered its guidance for the current quarter. Now SanDisk believes it’s only going to drive about $1.3 billion worth of revenue in Q1, versus the previous estimate of something between $1.4 and $1.45 billion.
Fanning the bearish flames were the downgrades of SNDK stock that immediately followed the alarming announcement. Bank of America lowered Sandisk shares to a “Neutral” rating. BTIG also cut its rating on SNDK from “Buy” to “Neutral,” and BTIG analyst Walter Piecyk went on to observe “the minimal amount of information provided by the company whenever it pre-announces as well as its inability to provide additional information for weeks until it actually reports the quarter leave investors in a vacuum with a lack of information.”
The market didn’t appear to disagree.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.