Hovnanian, SanDisk: After-Hours Trading
NEW YORK (TheStreet) -- Shares of Hovnanian Enterprises(HOV) fell in late trades on Tuesday after the home builder unveiled plans for a dilutive stock offering.
After the closing bell, the Red Bank, N.J.-based company said it plans to issue 25 million Class A common shares in an underwritten public offering. Hovnanian has earmarked the proceeds for general corporate purposes and the purchase of certain senior notes in a private transaction.
The deal, which has Citigroup, Credit Suisse and J.P. Morgan serving as joint bookrunning managers, includes a 15% overallotment option. Hovnanian currently has 99.1 million outstanding shares.
The stock was last quoted at $2.28, down 3%, on volume of nearly 230,000, according to Nasdaq.com. Based on Tuesday's regular-session close at $2.35, the shares have lost nearly 30% in the past year but they have more than doubled since scraping a 52-week low of 89 cents on Oct. 6.
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Shares of SanDisk(SNDK) were losing ground in the extended session after the Milpitas, Calif.-based flash memory company lowered revenue and gross margin expectations for its fiscal first quarter ending this month.
The company cited "weaker than expected pricing and demand" for the diminished view.
SanDisk now sees revenue of roughly $1.2 billion vs. a prior projection for a range of $1.30 billion to $1.35 billion. The current average estimate of analysts polled by Thomson Reuters is for revenue of $1.34 billion in the quarter.
SanDisk didn't provide a specific guidance for gross margin other than to say it expects to come in below a previous forecast of 39-42%. Wall Street's consensus view sits at 41.8%.
The stock was last quoted at $46.65, down 6.8%, on volume of more than 250,000, according to Nasdaq.com. Year-to-date, the shares were roughly flat despite the strong rally in the broad market and tech stocks in particular.
The news was also weighing on Micron Technology(MU) in late trades, sending its shares down 1% to $7.90 on volume of less than 200,000.
SanDisk plans to report its fiscal first-quarter results on April 19.
Check out TheStreet's quote page for SanDisk for year-to-date share performance, analyst ratings, earnings estimates and much more.
--Written by Michael Baron in New York.
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