Why SanDisk (SNDK) Stock Is Down Today

NEW YORK (TheStreet) -- SanDisk (SNDK) was falling -9.3% to $97.86 Thursday after guiding below analysts' expectations for the third quarter, and despite beating expectations for earnings and revenue in the second quarter.

For the second quarter SanDisk reported earnings of $1.41 a share, while analysts surveyed by Thomson Reuters expected $1.39 a share. Revenue grew 10.1% to $1.63 billion for the quarter, above analysts' estimates of $1.6 billion. Gross margin fell to 48% in the quarter, from 51% in the first quarter.

SanDisk said it expects revenue of $1.675 billion to $1.725 billion for the third quarter, below analysts' estimates of $1.74 billion. Gross margin is expected to be in the range of 47% to 49%.

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TheStreet Ratings team rates SANDISK CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate SANDISK CORP (SNDK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

SNDK ChartSNDK data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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