SanDisk (SNDK) Tops Revenue Forecasts, Misses on EPS

SanDisk Corp. (SNDK) dropped $2.15 to $68.97 in after-hours trading after it reported fiscal-first quarter earnings.

The flash-memory chip maker handed in non-GAAP earnings of $0.62 per share on revenue of $1.33 billion, missing Wall Street estimates of $0.70 per share on revenue of $1.31 billion. GAAP net income came in at $39 million, or $0.17 per share, compared to net income of $269 million, or $1.14 per share, in the first quarter of fiscal 2014.

For Q1/15, SNDK issued revenue projection of $1.15 – $1.22 billion, compared to the consensus revenue estimate of $1.42 billion.

“We are disappointed with our financial and operational performance and are quickly taking aggressive measures to regain the excellence in execution that we have delivered in the past,” said in a statement Sanjay Mehrotra, president and chief executive officer, SanDisk.

On valuation measures, SanDisk Corp. shares, which currently have an average 3-month trading volume of 5.71 million shares, trade at a trailing-12 P/E of 16.81, a forward P/E of 13.22 and a P/E to growth ratio of 0.99. The median Wall Street price target on the name is $80.00 with a high target of $100.00. Currently ticker boasts 16 ‘Buy’ endorsements, compared to 16 ’Holds’ and 1 ‘Sell’.

Profitability-wise, SNDK has a t-12 profit and operating margin of 15.20% and 24.04%, respectively. The $15.15 billion market cap company reported $4.39 billion in cash in its most recent quarter.

SNDK currently prints a one year loss of about 3.50% and a year-to-date loss of around 27%.

SanDisk Corporation designs, develops, manufactures, and markets data storage solutions in the United States and internationally. The company was founded in 1988 and is headquartered in Milpitas, California.

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