SanDisk Corporation Gains 5.8% on a Big Earnings Surprise

Image source: SanDisk.

Flash-based data storage specialist SanDisk (NASDAQ: SNDK  ) just reported results for the first quarter of 2014, inspiring a 5.8% after-hours share price surge.

Sales were $1.51 billion, a modest 1.3% above analyst projections. Nonetheless, non-GAAP earnings jumped 71% higher year over year, surging past Wall Street targets set at $1.25 per share to land at $1.44 per share.

"We delivered record first quarter results, driven by 61% growth in our SSD revenue and strong retail performance," explained SanDisk CEO Sanjay Mehrotra in a prepared statement.

On a conference call with analysts, CFO Judy Bruner said that the product mix shifted away from low-margin embedded solutions and into solutions such as iNAND mobile storage and full-blown solid-state drives, spearheaded by a new demand profile from major customer Ford Motor Company (NYSE: F  ) during the quarter.

The shifting demand picture drove gross margins higher in the first quarter, and the profits trickled all the way down to the bottom line. Bruner also said that this trend should continue in the second quarter, keeping margins strong once again. Gross margin guidance for the full year was moved about 3% higher, with the new target range between 47% and 49%.

Including the after-hours surge, SanDisk shares have gained 39% over the past year, and are trading close to all-time highs that were set earlier this month.

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: 2918643, ~/Articles/ArticleHandler.aspx, 9/4/2015 9:13:41 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 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

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

9/4/2015 4:00 PM
F $13.56 Down -0.28 -2.02%
Ford CAPS Rating: ****
SNDK $52.84 Down -1.28 -2.37%
SanDisk Corp CAPS Rating: ****