SanDisk Earnings: Here’s Why Investors are Not Excited Now

SanDisk Corp. (NASDAQ:SNDK) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5%.

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SanDisk Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 33.33% to $0.84 in the quarter versus EPS of $0.63 in the year-earlier quarter.

Revenue: Rose 11.23% to $1.34 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SanDisk Corp. reported adjusted EPS income of $0.84 per share. By that measure, the company beat the mean analyst estimate of $0.77. It beat the average revenue estimate of $1.3 billion.

Quoting Management: Our SSD products drove 20 percent of sales and we delivered a record first quarter retail revenue, said Sanjay Mehrotra, president and chief executive officer of SanDisk. Our strong results reflect an improved product mix and continued favorable industry supply and demand conditions. We believe our position in enterprise and client SSD markets, differentiated retail brand and continued focus on profitable growth provide us with solid momentum for continued gains in 2013.

Key Stats (on next page)…

Revenue decreased 13.01% from $1.54 billion in the previous quarter. EPS decreased 20% from $1.05 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.77 to a profit $0.83. For the current year, the average estimate has moved up from a profit of $3.51 to a profit of $3.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]