SanDisk Beats Q1 Estimates (SNDK)
Shares of SanDisk Corporation (NASDAQ: SNDK) edged up in aftermarket hours on Wednesday after the memory chipmaker posted quarterly results that topped analysts’ estimations, thanks to strong sales-growth in solid-state drives.
However, shares did not rally as investors are little cautious over the future pricing strategy on Chips. Shares initially slumped 5.3% in extended trade after closing down 3.08% at $55.72 in regular trading hours.
While memory chip prices plunged last year, prices for NAND and DRAN memory chips have been increasing.
According to CNBC, Pacific Crest analyst Monika Garg said that investors are worried that chipmakers could increase the production capacity which in turn could put pressure on NAND prices.
“I think NAND pricing remains healthy this year. For at least the next four or five months, nobody is going to add any new capacity,” Garg added, according to CNBC.
For the fiscal first quarter, SanDisk reported a net income of $166 million or 68 cents a share up from $114 million or 46 cents a share, in the year-earlier quarter. Stripping out onetime items, non-GAAP earnings or adjusted earnings came at 84 cents a share while analysts’ consensus estimate was of 79 cents a share.
Revenue during the quarter soared 11% to $1.34 billion. Analysts polled by Thomson Reuters were expecting revenue of $1.307 billion.
More Posts by this author
- Stocks End Higher
- Gold Prices Edge Higher but Struggle to Stay Above $1400; Silver Prices Slip
- Stocks Bounce Back, IBM Shares Tumble but NASDAQ Climbs More Than 1%
- Forex Market Update: Yen Falls Sharply against U.S. Dollar
- Stocks Mixed in Early Trading
- Gold Prices Extend Gains, Silver Prices Also Jump
- Futures Point to Higher Start
 |
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.
|
