It's Showtime for SanDisk

Seth Jayson, The Motley Fool
Updated

SanDisk (NAS: SNDK) is expected to report Q4 earnings on Jan. 23. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict SanDisk's revenues will wane -3.0% and EPS will wither -42.6%.

The average estimate for revenue is $1.53 billion. On the bottom line, the average EPS estimate is $0.74.


Revenue details
 Last quarter, SanDisk notched revenue of $1.27 billion. GAAP reported sales were 10% lower than the prior-year quarter's $1.42 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.48. GAAP EPS of $0.31 for Q3 were 68% lower than the prior-year quarter's $0.96 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 30.8%, 1,340 basis points worse than the prior-year quarter. Operating margin was 10.4%, 1,690 basis points worse than the prior-year quarter. Net margin was 6.0%, 1,050 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.04 billion. The average EPS estimate is $2.05.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,895 members out of 2,045 rating the stock outperform, and 150 members rating it underperform. Among 442 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 421 give SanDisk a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SanDisk is outperform, with an average price target of $45.84.

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The article It's Showtime for SanDisk originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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