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SanDisk Corporation (NASDAQ:SNDK) is expected to report earnings for last fiscal quarter after the closing bell on January 25, 2012.

SanDisk Corporation designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. The company was founded in 1988 and is headquartered in Milpitas, California. SNDK trades an average of 4.3 million shares per day.

52 Week High: $53.46
52 Week Low: $32.24
Book Value: $27.96
Float Short: 3.04%

Analysts are expecting an improvement of $0.03 in earnings per share compared to last quarter's results of $1.2. A beat of $1.23 per share, will top the estimated per share earnings.Analyst estimates range between $1.18 and $1.25 per share.

The current trailing twelve months P/E ratio is 12.2. The forward P/E ratio is 10.63. Maybe it's just me, but I always think about the boiler room salesmen from Wall St. Warriors every time I hear the name SanDisk. Western Digital posted above expectations and this should be a positive sign for SanDisk although they are not totally competing (yet) in the same space. Long term as much as I like SanDisk I believe they will face headwinds from a move towards cloud storage and away from memory cards. Granted a reduction in total memory needed on any given device may be mitigated with a greater number of devices using flash and other types of memory, but this will soon turn into a commodity much like resisters and capacitors. Cameras are already starting to be able to use WiFi to connect to larger storage containers and it's hard for me to imagine a scenario where this doesn't accelerate. SanDisk is near the upper end of the price channel and near resistance, it may be a good time to either sell some call options to hedge or take some gains off the table.

For the same fiscal period year-over-year, revenue has improved to $4.83 billion for 2010 vs. $3.57 billion for 2009. The bottom line has rising earnings year-over-year of $1.30 billion for 2010 vs. $415.31 million for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $1.46 billion for 2010 vs. $519.39 million for 2009.Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.
paid2trade.com revenue gross bar chart for SNDK

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-YearRevenue EstimatesActual$ DifferenceDifference %
Sep-11$ 1.42 B$ 1.42 B$ -3.29 M-0.23%
Jun-11$ 1.34 B$ 1.37 B$ 33.62 M2.51%
Mar-11$ 1.26 B$ 1.29 B$ 33.41 M2.65%
Dec-10$ 1.31 B$ 1.33 B$ 21.73 M1.66%
Sep-10$ 1.24 B$ 1.23 B$ -3.51 M-0.28%

M = millions, B = billions

Differences are rounded. (Some onetime items are often excluded in reported EPS)
paid2trade.com Quarterly Estimates And Actual EPS results SNDK
Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for SNDK
paid2trade.com short interest tool. The total short interest number of shares for SNDK

The number of days to cover short interest based on average daily trading volume for SNDK.
paid2trade.com number of days to cover short interest based on average daily trading volume for SNDK

Quantum Corporation (NYSE:QTM) is scheduled to release last fiscal quarter's results after the closing bell on January 25, 2012.

Quantum Corporation, a storage company, provides backup, recovery, and archive solutions for customers ranging from small businesses to multinational enterprises in the Americas, Europe, and the Asia Pacific. The company was founded in 1980 and is headquartered in San Jose, California. QTM trades an average of 1.3 million shares per day.

52 Week High: $3.93
52 Week Low: $1.53
Book Value: $-0.21
Float Short: 3.77%

On average, analysts are expecting a drop of $-0.03 in earnings per share compared to last quarter's results of $0.06. The number to beat is $0.03 per share, based on the estimated mean earnings.

Quantum is not much more exciting than SanDisk and in fact I like SanDisk better of the two. Quantum is priced under $5 a share and that is always suspect for ending up dust in the wind. The short interest is still relatively small, but growing which is not a very happy place to be. Short traders are generally the smart money and if they are increasing their bets against a low price stock it throws up a red flag for me. The stock once again did manage to break through the 200 day moving average and if it can hold this time (third time in as many months), I will likely have to take another look. Until then, I won't be adding any shares to my portfolio at this price.

For the same fiscal period year-over-year, revenue has declined to $672.27 million for 2011 vs. $681.43 million for 2010. The bottom line has falling earnings year-over-year of $4.54 million for 2011 vs. $16.63 million for 2010.The company's earnings before interest and taxes are falling with an EBIT year-over-year of $24.70 million for 2011 vs. $29.31 million for 2010.Lower revenue along with a drop in earnings is often one of the last signs to get out of the way of a falling stock price.

Here is a look at the fiscal year revenue.
paid2trade.com revenue gross bar chart for QTM

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-YearRevenue EstimatesActual$ DifferenceDifference %
Sep-11$ 160.17 M$ 165.04 M$ 4.87 M3.04%
Jun-11$ 159.87 M$ 153.54 M$ -6.33 M-3.96%
Mar-11$ 165.13 M$ 165.10 M$ -0.03 M-0.02%
Dec-10$ 192.40 M$ 176.23 M$ -16.17 M-8.4%
Sep-10$ 170.81 M$ 167.72 M$ -3.09 M-1.81%

M = millions, B = billions

Differences are rounded. (Some onetime items are often excluded in reported EPS)
paid2trade.com Quarterly Estimates And Actual EPS results QTM
Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for QTM
paid2trade.com short interest tool. The total short interest number of shares for QTM

The number of days to cover short interest based on average daily trading volume for QTM.
paid2trade.com number of days to cover short interest based on average daily trading volume for QTM

Thank you for reading my article. Please also feel free to share your thoughts and comments.

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Source: Earnings Preview: SanDisk And Quantum Report Results Wednesday