SanDisk Corporation 3Q Profit Down, Stock Falls

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SanDisk Corporation (NASDAQ:SNDK) reported earnings for the third quarter that exceeded the average estimate of Wall Street analysts.

Financial results

SanDisk Corporation (NASDAQ: SNDK) said its non-GAAP earnings for the third quarter was $336 million or $1.45 per share, lower compared with its net income of $371 million or $1.59 per share in the same period a year ago. The company said its revenue increased 7% to $1.75 billion on an annual basis.

Wall Street analysts expected the company to deliver $1.33 in earnings per share and $1.77 billion in revenue based on data compiled by Yahoo! Finance.

In a statement, Sanjay Mehrotra, president and CEO of SanDisk Corporation (NASDAQ:SNDK) said, “Third quarter results reflect the strength of our diversified product portfolio, broad customer engagements and solid execution. Demand for NAND flash continues to be strong across mobile, client and enterprise, where SanDisk’s innovations are creating significant opportunities. As we focus on closing a record 2014, we also look forward to building upon our success in 2015.”

During the quarter, SanDisk Corporation (NASDAQ:SNDK) said its GAAP gross profit was $817 million compared with $802 million last year. Its GAAP operating income was $388 million, down from $408 million in the year ago quarter.

SanDisk declared dividend

The board of directors of SanDisk Corporation (NASDAQ:SNDK) approved a dividend of $0.30 per share for the fourth quarter to shareholders of record as of the close of business on November 3. The dividend will be payable on November 24.

Other financial highlights

During the quarter, SanDisk Corporation (NASDAQ:SNDK) completed the acquisition of Fusion-io for approximately $1.1 billion. The company also opened the Phase 2 of Fab 5 and started the new Fab 2 in Yokkaichi, Japan.

The company also introduced products in different categories including the SanDisk Ultra II SSD, which uses the X3 technology to deliver high-performance, cost effective storage upgrades for PCs. The company also launched the 512 GB SanDisk Extreme SDXC UHS-1 card and 64GB SanDisk Extreme PRO micro SDXC™ UHS-I card.

The stock price of SanDisk Corporation (NASDAQ:SNDK) closed $85.31 per share, up 1.14%. However, the stock declined more than 5% to $80.65 per share during the extended hours trading around 5:39 P.M. in New York.

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