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Stock Market & Financial Investment News

News Breaks
July 17, 2014
12:15 EDTHILL, FIO, EMC, SNDK, NTAPSanDisk plummets after Q3 revenue outlook disappoints
Shares of flash memory manufacturer SanDisk (SNDK) are sinking after the company’s third quarter revenue outlook trailed analysts’ consensus estimates. WHAT'S NEW: Last night, SanDisk reported second quarter adjusted EPS of $1.41 and revenue of $1.63B, beating estimates of $1.39 and $1.6B, respectively. The company said Q2 adjusted gross margin came in at 48%. President and Chief Executive Officer Sanjay Mehrotra commented that SSD solutions comprised 29% of Q2 revenue, compared to 16% in the year ago quarter, "demonstrating strong progress in driving our strategic priorities." Mehrotra said the Q2 results positions the company to deliver a record year in 2014. WHAT’S NOTABLE: SanDisk forecast Q3 revenue of $1.675B-$1.725B, below consensus estimates of $1.74B. The comapny also guided Q3 adjusted gross margin at 47%-49%. On the company's earnings conference call, management said it expects the second half of 2014 to be "somewhat supply constrained." The company expects the Fusion-io (FIO) deal to close in Q3, and sees it being accretive to earnings in the second half of fiscal 2015, though initial synergies will be "modest." SanDisk sees fiscal year 2014 cash capital expenditures of approximately $600M and is still targeting returning 100% of free cash flow to shareholders. ANALYST REACTION: This morning, analyst commentary was mostly positive. Research firm Piper Jaffray said SanDisk’s post-earnings pull back represents a buying opportunity. The firm, which reiterated an Overweight rating with a $110 price target, believes favorable trends for 2015 remain intact. BofA/Merrill reiterated its Buy rating and $125 price target on the shares. Conversely, Summit Research said it believes SanDisk's valuation is stretched and priced to perfection. The firm believes margins have peaked and 3D NAND issues remain a concern. PRICE ACTION: In early afternoon trading, SanDisk fell $13.72 or about 12.64%, to $94.20 on nearly four times its average daily trading volume. Despite today’s pull back, the stock has gained approximately 59% over the past twelve months, and 34% year to date. OTHERS TO WATCH: Other companies that produce memory include NetApp (NTAP), EMC (EMC) and Dot Hill Systems (HILL).
News For SNDK;FIO;NTAP;EMC;HILL From The Last 14 Days
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January 22, 2015
05:58 EDTSNDKSanDisk pullback a buying opportunity, says Piper Jaffray
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January 21, 2015
17:50 EDTSNDKSanDisk reverses in after hours to down 6% after guidance
SanDisk peer Micron is trading down over 1% in the after hours.
17:45 EDTSNDKSanDisk sees return to year-on-year revenue growth in 2H
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17:44 EDTSNDKSanDisk sees year over year revenue declines in Q1, Q2
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17:40 EDTSNDKSanDisk sees 1H focus on recovery from supply issue, client SSD business
Comment from Q4 earnings call.
17:33 EDTSNDKSanDisk sees lower SSD revenue in 2015 due to 'shrinking' client interest
17:29 EDTSNDKSanDisk sees FY15 revenue $6.5B-$6.8B, consensus $7.23B
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17:27 EDTSNDKSanDisk sees Q1 revenue $1.4B-$1.45B, consensus $1.6B
Sees Q1 adjusted gross margin similar to Q4 at 45%.
17:21 EDTSNDKSanDisk saw faster 'demand reduction' for certain 'end of life' products in Q4
Comment made on Q4 earnings call.
16:31 EDTSNDKSanDisk up 1% after reporting Q4 results, share buyback expansion
16:09 EDTSNDKSanDisk expands stock repurchase program by $2.5B
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16:07 EDTSNDKSanDisk says Q4 results impacted primarily by supply constraints
“We delivered record revenue in 2014 with continued progress in shifting our portfolio towards high value solutions,” said Sanjay Mehrotra, president and chief executive officer of SanDisk. “Our SSD solutions reached 29 percent of revenue in 2014, with strong growth from both client and enterprise SSDs. We are disappointed with our fourth quarter results, which were impacted primarily by supply constraints. We believe that NAND flash industry fundamentals are healthy, and we expect our financial results to improve as we move through 2015.”
16:07 EDTSNDKSanDisk reports Q4 adjusted gross margin 45%
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16:06 EDTSNDKSanDisk reports Q4 EPS $1.30, consensus $1.27
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15:27 EDTSNDKNotable companies reporting after market close
Notable companies reporting after the market close, with earnings consensus, include American Express (AXP), consensus $1.38; Kinder Morgan (KMI), consensus 34c; eBay (EBAY), consensus 89c; Discover Financial Services (DFS), consensus $1.30; Crown Castle (CCI), consensus $1.05; Crown Castle (SNDK), consensus $1.27; Xilinx (XLNX), consensus 61c; F5 Networks (FFIV), consensus $1.49; United Rentals (URI), consensus $2.07; Plexus (PLXS), consensus 72c; Boston Private Financial Holdings (BPFH), consensus 22c; Dolby Laboratories (DLB), consensus 38c; SLM (SLM), consensus 5c; East West Bancorp (EWBC), consensus 65c; Raymond James Financial (RJF), consensus 86c; BancorpSouth (BXS), consensus 32c.
15:16 EDTSNDKSanDisk January weekly 79 straddle priced for 6% movement into Q4
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15:07 EDTSNDKEarnings Preview: Sandisk reports after cutting revenue forecast
SanDisk (SNDK) is expected to report fourth quarter earnings after the close on Wednesday, January 21, with a conference call scheduled for 5:00 pm ET. SanDisk manufactures data storage solutions, including removable and embedded Flash memory and solid-state drives. EXPECTATIONS: Analysts are looking for earnings per share of $1.27 on revenue of $1.73B. The consensus range is $1.15-$1.62 for EPS on revenue of $1.72B-$1.73B, according to First Call. On January 12, SanDisk cut its revenue outlook for Q4 to $1.73B from $1.8B-$1.85B. It added that non-GAAP gross margin for the quarter is expected to be approximately 45%, compared to the previously guided range of 47%-49%. "The lower revenue was primarily due to weaker than expected sales of retail and iNAND products," SanDisk explained. LAST QUARTER: On October 16, SanDisk reported third quarter adjusted earnings per share of $1.45 and revenue of $1.75B, compared to expectations of $1.33 and $1.77B, respectively. At that time, SanDisk president and CEO Sanjay Mehrotra said demand for NAND flash continued to be strong across mobile, client and enterprise. On its Q3 earnings call, SanDisk said it was on track for Fusion-io to add to earnings in the second half of fiscal 2015. STREET RESEARCH: On the day of SanDisk's revenue warning, Needham downgraded SanDisk to Hold from Buy, citing the gross margin decline in the company's negative Q4 pre-announcement. Summit Research also downgraded SanDisk to Hold that day, while SanDisk was downgraded to Hold from Buy at Drexel Hamilton the next day. Piper Jaffray, however, viewed SanDisk's lowered Q4 revenue outlook as a "near-term reset" and said it continues to expect "solid ongoing demand" for NAND into 2016. Piper says its long-term thesis on shares of SanDisk remains unchanged. It lowered its price target for shares to $105 and $106 and reiterated an Overweight rating on the stock. Yesterday, Nomura downgraded SanDisk to Reduce from Neutral to reflect worsening product mix as removables continue to decline. The firm, which lowered its price target on the stock to $65 from $70, also noted the company's tough embedded comps and low dividend yield. PRICE ACTION: Over the last three months, shares of SanDisk have declined about 9.5%. Since January 1, SanDisk shares are down about 18%. Ahead of tonight's report, SanDisk is up almost 2% to $80.23 in afternoon trading.
14:23 EDTSNDKSanDisk technical notes before earnings
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09:02 EDTEMCSciQuest names Beth Hendriks as Chief Technology Officer
SciQuest (SQI) announced that EMC (EMC) executive Beth Hendriks will be joining the company as its new chief technology officer. In this role, she will be responsible for enhancing the breadth and depth of the SciQuest Spend Management Suite while accelerating technology and user experience innovation. Hendriks joins SciQuest from EMC, where she served as senior director of engineering.
January 20, 2015
07:17 EDTSNDKSanDisk downgraded to Reduce from Neutral at Nomura
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