The 10-second takeaway
For the quarter ended July 1 (Q2), SanDisk beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins contracted across the board.
SanDisk chalked up revenue of $1.03 billion. The 23 analysts polled by S&P Capital IQ looked for sales of $1.02 billion on the same basis. GAAP reported sales were 25% lower than the prior-year quarter's $1.37 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.05 for Q2 were 95% lower than the prior-year quarter's $1.02 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 28.1%, 1,710 basis points worse than the prior-year quarter. Operating margin was 3.5%, 2,420 basis points worse than the prior-year quarter. Net margin was 1.3%, 1,680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $4.95 billion. The average EPS estimate is $1.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,948 members out of 2,098 rating the stock outperform, and 151 members rating it underperform. Among 408 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 378 give SanDisk a green thumbs-up, and 30 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 $44.08.
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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.