The 10-second takeaway
For the quarter ended March 31 (Q1), SanDisk beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
SanDisk booked revenue of $1.34 billion. The 27 analysts polled by S&P Capital IQ expected a top line of $1.30 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $1.21 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 $0.84. The 28 earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. Non-GAAP EPS of $0.84 for Q1 were 33% higher than the prior-year quarter's $0.63 per share. GAAP EPS of $0.68 for Q1 were 48% higher than the prior-year quarter's $0.46 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 40.4%, 470 basis points better than the prior-year quarter. Operating margin was 18.9%, 340 basis points better than the prior-year quarter. Net margin was 12.4%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $5.67 billion. The average EPS estimate is $3.94.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,879 members out of 2,031 rating the stock outperform, and 152 members rating it underperform. Among 411 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 387 give SanDisk a green thumbs-up, and 24 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 $57.85.
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