Tags: SanDisk | Profit | Estimates | Sales

SanDisk Profit Tops Estimates as Sales Jump

Wednesday, 17 Jul 2013 05:18 PM

SanDisk Corp., a maker of flash memory for mobile devices, reported profit that exceeded analysts’ estimates, helped by sales and buoyed by prices of chips that remain high as producers limit output increases.

Second-quarter profit, excluding some items, was $299 million, or $1.21 a share, the Milpitas, California-based company said in a statement Wednesday. Sales rose 43 percent to $1.48 billion. Analysts on average had estimated profit of 93 cents a share and revenue of $1.39 billion, according to data compiled by Bloomberg.

SanDisk is curbing spending on improving factories and building new ones as the memory-chip industry scales back supply to stem price declines. The company has said it expects enough demand to keep prices healthy this year. SanDisk, in a manufacturing partnership with Toshiba Corp., competes with Samsung Electronics Co. in the market for so-called Nand flash memory, chips that act as storage for data in phones, tablets and some personal computers.

“You could make the case that rather than price reductions that producers have seen for the past decade you could see the pricing stabilize,” said Hans Mosesmann, an analyst for Raymond James & Associates, who recommends buying SanDisk stock. “You could see Nand prices go flat on a year-over-year basis.”

SanDisk slipped 0.1 percent to $59.44 at the close in New York today. That left it up 37 percent this year, compared with a 28 percent advance by the Philadelphia Semiconductor Index.

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SanDisk Corp., a maker of flash memory for mobile devices, reported profit that exceeded analysts' estimates, helped by sales and buoyed by prices of chips that remain high as producers limit output increases.
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2013-18-17
Wednesday, 17 Jul 2013 05:18 PM
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