SanDisk Corporation Reports Solid Q4 Sales, Strong Margins and Earnings

Data storage specialist SanDisk (NASDAQ: SNDK  ) just reported results for the fourth quarter of 2013.

SanDisk's $1.71 of adjusted earnings per share easily surpassed the $1.57 Wall Street target. On the top line, SanDisk met expectations exactly with $1.7 billion in total revenue. That's a 63% year-over-year earnings boost on the back of 12% higher sales.

In the earnings call, SanDisk set revenue guidance for the first quarter just below analyst expectations.

Reacting to SanDisk's solid fourth quarter and the ensuing soft revenue guidance, investors took the stock for a ride. SanDisk shares traded up 3.1% in after-hours action, then down 3.9% from closing prices, and finally came to rest close to the afternoon's closing levels.

To explain the quarter's steady performance, CEO Sanjay Mehrotra pointed to strong execution and favorable shifts in the company's product mix. "Our SSD product revenue set another quarterly record and represented 19 percent of our annual revenue," he said, "and we also set a record for annual retail product revenue."

These product lines tend to sell at higher margins than commodity storage and shipments to OEM partners. SanDisk reported gross margins at 50.7% this quarter, a strong bounce back from the 39.8% gross margins seen a year ago.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2805557, ~/Articles/ArticleHandler.aspx, 9/3/2015 3:29:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

Hypoallergenic. Contains six flavors not found in nature. Believes in coyotes and time as an abstract.

Follow Anders on Twitter, LinkedIn, and Google+.

Today's Market

updated Moments ago Sponsored by:
DOW 16,393.77 42.39 0.26%
S&P 500 1,953.71 4.85 0.25%
NASD 4,748.18 -1.80 -0.04%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/3/2015 3:13 PM
SNDK $54.24 Up +0.19 +0.35%
SanDisk Corp CAPS Rating: ****