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SanDisk Shares Rally on Q3 Results (SNDK)

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Shares of data storage solutions provider, SanDisk Corporation (NASDAQ: SNDK) gained 2.71 percent on Friday after the company announced better than expected fiscal third-quarter earnings and revenue even as the management provided upbeat outlook on the fiscal fourth quarter thanks to company’s rising market share in the retail segment across different geographical locations.

While the OEM division which includes mobile embedded business and SSDs recorded strong growth in revenue compared to previous quarter, retail products segment witnessed strong back-to-school demand.

For the quarter (July September), the company reported net profit of $76.5 million, or 31 cents per share,  67 percent plunge from $233.3 million, or 96 cents per share, in the year earlier quarter. Adjusted earnings stood at $117.8 million, or 48 cents per share, in the latest quarter.

Total revenue came at $1.27 billion, 10.1% lower than year earlier quarter but 23.3 % higher than previous quarter’s revenue. Analysts’ consensual estimate was for earnings of 33 cents per share (on adjusted basis on revenue of $1.22 billion.

Segment wise, revenue from products fell 10.6% YOY to $1.18 billion while revenue from royalty and license dropped 3.3% YOY to $ 91.0 million. However, both segments performed much better compared to the previous quarter.

Meanwhile the management also provided a positive outlook on the fiscal fourth quarter. The management believes revenue will receive a boost in the fourth quarter since prices decline could moderate further during the period even as it expects higher demand for its SSD and mobile solutions.

For the fiscal fourth quarter, SanDisk is expecting revenue in the range of $1.50 billion, plus or minus $50 million.

Analysts are expecting earnings of 54 cents per share in the fiscal fourth quarter and $1.60 a share for the fiscal year 2012.

 

 

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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