SanDisk Doubles Profit, Beats Expectations
April 27 2016 - 5:20PM
Dow Jones News
SanDisk Corp. said earnings doubled in the first quarter and
easily topped expectations, results that come as the disk drive
maker is in the process of merging with Western Digital Corp.
The Milipitas, Calif., company, which struck a $19 billion deal
to be bought by memory-chip maker Western Digital late last year,
reported a profit of $78.4 million, or 37 cents a share. That is up
from $39 million, or 17 cents a share, a year earlier.
Excluding acquisition-related expenses, among other items, the
per-share profit rose to 82 cents from 62 cents in the year-ago
quarter. Analysts were looking for 55 cents in adjusted earnings
per share.
A 2.5% rise in sales, to $1.37 billion, helped push earnings
higher. Analysts predicted $1.21 billion in first-quarter
revenue.
Lower costs, which declined by 17% during the period, also
helped the bottom line. The decline in operating expenses was due
in part to lower merger costs than in the year-ago quarter, a
decline in overhead expenses and reduced research and development
spending.
Chief Executive Sanjay Mehrotra highlighted growth in sales of
enterprise solutions, client SSDs and removable products. He
expressed enthusiasm over the opportunities post-merger, but didn't
elaborate on the transaction's progression.
Shares in the company, up 12% over the past 12 months, edged
0.6% higher in after-hours trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
April 27, 2016 17:05 ET (21:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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