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.

About Ari Haruni 343 Articles
Ari Haruni

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