The 10-second takeaway
For the quarter ended April 1 (Q1), SanDisk met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins shrank across the board.
SanDisk notched revenue of $1.21 billion. The 20 analysts polled by S&P Capital IQ expected to see revenue of $1.21 billion on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $1.29 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.63. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.71 per share on the same basis. GAAP EPS of $0.46 for Q1 were 50% lower than the prior-year quarter's $0.92 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.7%, 730 basis points worse than the prior-year quarter. Operating margin was 15.9%, 1,110 basis points worse than the prior-year quarter. Net margin was 9.5%, 780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $5.25 billion. The average EPS estimate is $3.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,942 members out of 2,084 rating the stock outperform, and 143 members rating it underperform. Among 471 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 443 give SanDisk a green thumbs-up, and 28 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SanDisk is outperform, with an average price target of $58.95.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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