SanDisk Beats Quarter Estimates but Guidance Sends Shares Tumbling Then Rebounding
A shift into multi‑year customer contracts and a $14 billion buyback boosts revenue visibility, concentrating attention on whether current margins can be sustained
Overview
- SanDisk reported a stronger‑than‑expected quarter on Thursday with adjusted EPS of $39.25 and revenue of $8.97 billion, both above Street estimates.
- Investors pulled back after the company issued softer near‑term revenue guidance, and the stock fell Thursday before rebounding about 3.5% to $1,302.96 in Friday premarket trading.
- CEO David Goeckeler said the company has pivoted to long‑term purchase agreements, now totaling eight deals with six customers and a floor value of at least $93.9 billion.
- Management expects those contracts to cover roughly half of fiscal 2027 production and about two‑thirds of fiscal 2028 output, and the board approved a $14 billion repurchase that raises remaining buyback capacity to $15.5 billion.
- Analysts broadly remain positive with a consensus Buy and an average price target near $2,115, though firms flagged valuation, margin durability and new NAND capacity as key risks to watch.