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SanDisk Corporation (SNDK) is scheduled to report its Q2 2012 results on July 19, 2012, after the bell. The street expects EPS and revenue of $0.20 and $1.02B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from SNDK and the news from its closest competitors.

SanDisk Corp. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $0.63 EPS, failing to meet analyst estimates of $0.69.

SanDisk Corp. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.20 based on 22 analysts' estimates, sharply down from $1.14 a year ago. Revenue estimates are $1.02B, down from $1.37B a year ago. The median target price by analysts for the stock is $45.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 19, 2012, Deutsche Bank downgraded the company from Buy to Hold.
  • On April 4, 2012, Sterne Agee reiterated Buy rating for the company.
  • On January 26, 2012, UBS reiterated Buy rating for the company.
  • On January 26, 2012, RBC Capital Mkts reiterated Top Pick rating for the company.

Latest News

  • On June 26, 2012, SanDisk Corporation announced the acquisition of Schooner Information Technology, Inc., an enterprise software company located in Silicon Valley that develops flash-optimized database and data store solutions.
  • On April 20, 2012, SanDisk Corporation announced that for second quarter of 2012, it expects sequential decline in revenue which is forecasted to be approximately $1 billion, plus or minus $50 million.
  • On February 15, 2012, SanDisk Corporation announced that it has extended its enterprise solid state disk drive (SSD) solutions portfolio with the acquisition of FlashSoft, a provider of caching software products.
  • On February 15, 2012, SanDisk Corporation announced that it has entered into a worldwide, exclusive agreement with Diskeeper Corp. to license its industry caching software solutions for solid state disk drives .
  • On January 25, 2012, SanDisk Corporation announced that for first quarter of 2012, it expects revenue to be in the range of $1.3-$1.35 billion. For fiscal 2012, it expects revenue to be in the range of $6.2-$6.6 billion.

Competitors

Intel (INTC), Micron Technology (MU), OCZ Technology Group (OCZ), and STEC (STEC) are considered major competitors for SanDisk and the table below provides the key metrics for these companies and the industry.

SanDisk Corp. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)SNDK Chart

SNDK data by YCharts

Competitors' Latest Development

  • On July 10, 2012, Reuters reported that a group of Elpida Memory Inc bondholders will vote against Micron Technology Inc's plan to acquire the bankrupt Japanese chipmaker for about $750 million, arguing it undervalues the company's assets, a court filing shows.
  • On July 10, 2012, Reuters reported that Intel Corporation will spend more than $4 billion to buy up to 15% of ASML Holding NV. Intel hopes to speed the adoption of the next generation of chip manufacturing processes from ASML by as much as two years.
  • On July 10, 2012, OCZ Technology Group Inc announced that for the second quarter of 2013, it expects net revenue to be in the range of $130 to $140 million. For fiscal 2013, it expects net revenue to be in the range of $630 to $700 million.
  • On July 2, 2012, Micron Technology, Inc. and Elpida Memory, Inc.'s trustees announced that the parties have signed a definitive sponsor agreement for Micron to acquire and support Elpida.
  • On June 27, 2012, OCZ Technology Group Inc announced that Dynamite Data, has selected OCZ's Deneva 2 SATA III SSDs as part of updated storage infrastructure.
  • On June 18, 2012, InterDigital Inc and Intel Corporation announced that certain of InterDigital`s subsidiaries have signed a definitive agreement to sell to Intel roughly 1,700 patents and patent applications for $375 million in cash.
  • On June 7, 2012, Phoenix Technologies Ltd., a company in UEFI firmware technology, products and tools, announced it has signed an agreement with Intel Corporation to be its collaborative partner for BIOS.
  • On June 4, 2012, Avanquest Software SA has announced having signed a collaboration agreement with Intel Corporation for the marketing of Avanquest Software's flagship titles on the Intel AppUpSM center in France.
  • On May 30, 2012, Origin Energy Limited announced that Transform Solar, a 50:50 solar photovoltaic joint venture between Micron Technology Inc. (Micron) and Origin Energy Limited (Origin), decided to discontinue production of its SLIVER photovoltaic modules in Idaho, United States.
  • On May 10, 2012, Micron Technology, Inc. confirmed it is engaged in discussions with Elpida Memory, Inc.'s trustees to acquire Elpida's business. Micron made the announcement following a May 10 approval by the Tokyo District Court allowing Elpida's trustees to negotiate an agreement with Micron, pursuant to which Micron would become Elpida's sponsor and acquire Elpida's entire business in accordance with the corporate reorganization proceedings.
  • On May 8, 2012, OCZ Technology Group Inc and IceWEB Storage Corporation announced that OCZ's SAS-based Talos 2 SSDs and SATA III-based Deneva 2 SSDs have been selected by IceWEB for inclusion in IceWEB's complete line of unified data storage systems.
  • On May 8, 2012, STEC Inc announced that for second quarter of 2012, it expects revenue to range from $40 million to $42 million and non-GAAP diluted loss per share to range from $0.26 to $0.28. According to I/BE/S Estimates, analysts on an average are expecting the Company to report revenue of $51.5 million and EPS of $(0.14) for second quarter of 2012.
  • On May 7, 2012, Intel Corporation announced that its board of directors has approved a 7% increase in the quarterly cash dividend to $0.225 per share ($0.90 per share on an annual basis), beginning with the dividend that will be declared in the third quarter of 2012.
  • On May 7, 2012, Reuters reported that Micron Technology, Inc. has won the right to negotiate exclusively to buy Japanese chip maker Elpida Memory, Inc. after offering more than JPY200 billion ($2.5 billion) for the company.
  • On May 2, 2012, Cray Inc. announced that it has completed the previously announced transaction to sell its interconnect hardware development program and related intellectual property to Intel Corporation for $140 million in cash.
  • On May 1, 2012, OCZ Technology Group Inc announced that for the first quarter of 2013, it expects net revenue to be in the range of $110 million to $120 million. For fiscal 2013, the Company expects net revenue to be in the range of $630 million to $700 million.
  • On April 27, 2012, Aware, Inc. announced that it has signed an agreement for the sale of selected patents and patent applications to Intel Corporation for approximately USD75,000,000.00, subject to customary closing conditions and any required regulatory approvals.
  • On April 25, 2012, Reuters reported that Intel Corporation will ask Europe's second-highest court in July to scrap a EUR1.06 billion ($1.4 billion) EU antitrust fine, arguing regulators failed to prove it blocked a rival in their 2009 decision.
  • On April 24, 2012, Cray Inc. announced that it signed a definitive agreement to sell its interconnect hardware development program and related intellectual property to Intel Corporation for $140 million in cash.
  • On April 23, 2012, OCZ Technology Group, Inc. announced that its SAS-based Talos Two SSDs have been selected by HyVE (Hybrid Virtualization Engine) Systems for implementation within three high-compute platforms targeted for virtual desktop infrastructure (VDI) academic and corporate end user compute solutions.
  • On April 19, 2012, Reuters reported that Apple Inc, Google Inc, Intel Corp and four other technology companies were ordered by a judge to face an antitrust lawsuit claiming they illegally conspired not to poach each other's employees.
  • On April 18, 2012, SeeNews - The Corporate Wire reported that the shares of Apple Inc, Visa Inc, Intel Corp, The Coca-Cola Company and Bank of America Corp can be traded on the Bucharest bourse as of April 18, 2012.
  • On April 17, 2012, Intel Corporation announced that for second quarter of 2012, it expects revenue to be $13.6 billion, plus or minus $500 million. The guidance does not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after April 17. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $13.4 billion for second quarter of 2012.
  • On April 13, 2012, Maxthon, a global software and web services company, announced collaboration with Intel at the Intel Developer Forum (IDF), held April 11-12 in Beijing.

Technical Overview


The stock has a market capitalization of $8.14B and is currently trading at $33.42 with a 52 week range of $30.99 - $53.46. The stock's year-to-date performance has been -32.09%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: SanDisk Corporation