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Tuesday, October 20, 2009

SanDisk Shares Jump on Higher Profit, Revenue

By Kathryn Glass

FOXBusiness

Shares of SanDisk Corporation (SNDK) soared more than 10% after the company reported earnings well ahead of analyst estimates and saw sales improve by 14% compared to a year ago.

The maker of flash-memory cards saw profit more than double to $231 million or 99 cents per share compared to a loss of $166 million or 74 cents per share in the third quarter of 2008.

Non-GAAP profit, which excludes charges related to acquisitions, rose to $176 million or $75 cents per share, compared to a loss of $132 million or 59 cents per share in the year-ago period.

Analysts were expecting earnings of 26 cents per share, according to a poll by Thomson Reuters.

Revenue rose 14% in the third quarter to $935 million, and sales were up 28% from the previous quarter.
SanDisk is expecting to see non-GAAP gross margin ranging between 25% and 30%, while revenue is projected to come in between $1.1 billion and $1.2 billion in the fourth quarter of 2009.

Shares of the company were trading up $2.27, or 10.57% at $23.75 per share in after-hours trading after rising two cents to close at $21.48 in Tuesday’s session.

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