For the second quarter SanDisk reported earnings of $1.41 a share and revenue of $1.63 billion. Analysts surveyed by Thomson Reuters expected earnings of $1.39 a share and $1.6 billion in revenue. Gross margin for the quarter fell to 48% from 51% in the previous quarter.
The company said it expects between $1.675 billion and $1.725 billion in revenue for the third quarter, below analysts' estimates of $1.74 billion. SanDisk expects gross margin of 47% to 49% in the quarter.
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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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: