SanDisk Corporation (NASDAQ:SNDK) lost 4.51% to end the last trading session despite a gradual intraday recovery of 4% from the day low. The disappointing result of the company weighed heavily on the stock price and the volume surged to 23 million against the daily average of 7 million only. The company missed both the earnings and revenue estimates for the first quarter.
SanDisk Corporation (NASDAQ:SNDK) was expected to report a profit of 59 cents per share but it managed only 50 cents a share. The revenue was expected to come at $1.36 billion but the actual revenue came at $1.33 billion, a decrease of 12% on a y-o-y basis and a 23% sequential decrease. The consensus of non-GAAP earnings per share was $0.66 but the reported EPS came at $0.62, much lower than the $1.44 from the same quarter last year.
SanDisk Corporation (NASDAQ:SNDK) sees qualification delays impacting embedded and enterprise sales, weaker than expected pricing, rapid market shifts reducing 2015 opportunity in the enterprise market and supply challenges as the major issue impacting the first quarter results and future outlook. Further sequential decline is expected by the company in Q2, with quarterly revenue in the range of $1.15-$1.22 billion but that should be followed by sequential growth in both Q3 and Q4. However, revenue growth on a y-o-y basis is not expected in the second half of 2015.
Technically, the stock looks all set for another sideways range for a few weeks before the next dramatic crash materializes, as it has been the pattern for the last 1 year which has seen 3 such instances. The long term chart showed the entire rally in 2012-14 to be coming out of an Inverse Head & Shoulders pattern and the top coming right after the target was achieved. Further decline may take the stock to $50-$52 levels in the next few months.
