Sandisk Q2 revenue up 61%, beats expectations on data center strength

Overview

• Flash memory maker's fiscal Q2 revenue rose 61% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

Outlook

• Sandisk expects third-quarter revenue between $4.40 bln and $4.80 bln

• Company anticipates Q3 Non-GAAP diluted EPS between $12.00 and $14.00

• Sandisk forecasts Q3 gross margin between 64.9% and 66.9%

Result Drivers

• DATACENTER REVENUE - Sandisk reported a 64% sequential increase in datacenter revenue, driven by AI infrastructure adoption

• PRODUCT MIX - CEO David Goeckeler attributed performance to better product mix and accelerating enterprise SSD deployments

• OPERATING EXPENSES - Operating expenses decreased by 7% sequentially, aiding profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Sandisk Corp is $365.00, about 30.8% below its January 28 closing price of $527.63

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw4S5Hjka

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