Post-Earnings Analysis - SanDisk

LONDON, November 3, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on SanDisk Corp. (NASDAQ: SNDK). On October 16, 2014, the company reported its financial results for Q3 FY14 (period ended September 28, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on SanDisk Corp. During Q3 FY14, the company's revenue grew 7% on a Y-o-Y basis and diluted EPS decreased $0.09 from the preceding year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, SanDisk Corp. reported revenue of $1,746 million, compared to $1,625 million in the same period last year. The company's revenue during the reported quarter came below Bloomberg analysts' forecast of $1,769 million. On a GAAP basis, the company's gross profit as a percentage of revenue decreased to 47% in Q3 FY14 from 49% in the prior-year quarter. Further, operating income for Q3 FY14 fell to $388 million, or 22% of revenue, from $408 million, or 25% of revenue, in the same quarter last year. As a result, the company's net income (GAAP) narrowed to $263 million, or $1.09 per diluted share in Q3 FY14, from $277 million, or $1.18 per diluted share in the year-ago quarter. The free research on SNDK can be downloaded as in PDF format at:  

http://www.Investor-Edge.com/SNDKFreeReport

On a non-GAAP basis, SanDisk Corp.'s gross profit margin as a percentage of revenue decreased marginally to 49% in Q3 FY14, from 50% in the prior-year quarter. Additionally, non-GAAP operating income for Q3 FY14 fell to $481 million, or 28% of revenue, from $533 million, or 33% of revenue, in the same quarter last year. As a result, the company's net income (non-GAAP) narrowed to $336 million, or $1.45 per diluted share in Q3 FY14, from $371 million, or $1.59 per diluted share in the year-ago quarter. Analysts from Bloomberg had expected the company to report net income of $314 million, or $1.33 per diluted share in Q3 FY14.

Sanjay Mehrotra, President and Chief Executive Officer of SanDisk Corp., stated that the Q3 FY14 results reflect the strength of the company's diversified product portfolio, broad customer engagements and solid execution. He also said that the demand for NAND flash continues to be strong across mobile, client and enterprise, where SanDisk's innovations are creating significant opportunities. He further asserted that as the company focuses on closing a record 2014, it is also looking forward to building upon its success in 2015. Sign up and read the free analyst's notes on SNDK at:

http://www.Investor-Edge.com/SNDK-03112014

During Q3 FY14, SanDisk completed its acquisition of Fusion-io for approximately $1.1 billion, net of cash assumed. The company also declared its Q4 FY14 dividend of $0.30 per share of common stock, which is payable on November 24, 2014 to shareholders of record as of the close of business on November 03, 2014.

Stock Performance 

A day after its earnings release, on October 17, 2014, SanDisk Corp.'s stock ended the session at $82.80, down 2.94%. The stock has witnessed mostly a positive trend since then. On the last close, Friday, October 31, 2014, it finished at $94.14, which was 4.24% above its previous day's closing price, after vacillating between $91.83 and $94.47. A total of 4.30 million shares were traded, which was above its three months average volume of 3.57 million shares. Over the last one month, the company's shares have fallen by 0.19%. However, the stock has gained 1.49% over the past three months and 33.46% from the beginning of 2014. Shares in SanDisk Corp. closed above their 200-day moving average. Moreover, the stock's 50-day moving average of $94.38 is greater than its 200-day moving average of $88.75. Furthermore, the stock traded at a PE ratio of 19.24 and has a Relative Strength Index (RSI) of 57.73. Visit Investor-Edge and access the latest research on SNDK at:

http://www.Investor-Edge.com/SNDKEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 13 insider transactions by 5 insiders. On October 06, 2014, Catherine P. Lego, Director at SanDisk Corp., sold 2,500 shares of the company at a price of $93.31 per share, and on October 20, 2014, she sold another 2,500 shares at a price of 84.41 per share. On October 09, 2014, Sanjay Mehrotra, President and CEO of the company, bought 16,875 shares at $51.24 per share and disposed an equal number of shares at $91.05 per share on the same day. On October 20, 2014, Judy Bruner, EVP, Administration and CFO at SanDisk Corp., purchased a total of 6,807 shares at an average price of $48.32 per share and disposed an equal number of shares at 84.43 per share. On October 23, 2014, Donald F. Robertson, Chief Accounting Officer & Vice President of the company, sold 3,245 shares at $88.55 per share. Additionally, on October 30, 2014, Michael E. Marks, Chairman of the Board, bought a total of 25,000 shares at an average price of $46.09 and sold 20,000 shares at $90.08 per share. Complimentary in-depth research on SNDK is available at:

http://www.Investor-Edge.com/SNDKInsiderTrading

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