The Q2 2014 earnings report for storage solutions stock SanDisk Corporation (NASDAQ: SNDK), a peer or competitor of Western Digital Corp (NASDAQ: WDC) and Seagate Technology PLC (NASDAQ: STX), is scheduled for after the market closes on Wednesday. Aside from the SanDisk Corporation earnings report, it should be said that the Western Digital Corp Q4 2014 earnings report is scheduled for July 30th while the Seagate Technology PLC Q4 2014 earnings report is scheduled for after the market closes on Thursday. However, SanDisk Corporation has been getting some bullish attention from analysts lately plus the company has recently announced a new acquisition.
What Should You Watch Out for With the SanDisk Corporation Earnings Report?First, here is a quick recap of SanDisk Corporation's recent earnings history from Yahoo! Finance:
| EPS Est | 0.93 | 1.32 | 1.58 | 1.26 |
| EPS Actual | 1.21 | 1.59 | 1.71 | 1.44 |
| Difference | 0.28 | 0.27 | 0.13 | 0.18 |
| Surprise % | 30.10% | 20.50% | 8.20% | 14.30% |
Back in mid April, SanDisk Corporation reported a 13% first quarter revenue increase and a 12% sequential decrease to $1.51 billion. On a GAAPbasis, first quarter net income was $269 million, or $1.14 per diluted share, compared to net income of $166 million, or $0.68 per diluted share, in the first quarter of fiscal 2013 and $338 million, or $1.45 per diluted share, in the fourth quarter of fiscal 2013. The CEO commented:
"We delivered record first quarter results, driven by 61 percent growth in our SSD revenue and strong retail performance. We are excited by the momentum we are building in our business as we continue to execute on our growth initiatives."
This time around and according to the Yahoo! Finance analyst estimates page, the consensus expects revenue of $1.60 billion and EPS of $1.39 - slightly higher than EPS of $1.38 expected sixty days ago and EPS of $1.34 expected ninety days ago.
On the news front and just today, Stifel raised its price target on SanDisk Corporation as they expect the company's June quarter results to beat consensus estimates and they predict that guidance for its September quarter may also beat expectations. Stifel believes that demand is shifting towards SanDisk Corporation's high valued products and it keeps a Buy rating on shares.
At the end of June, Pacific Crest Securities' analyst Monika Garg also raised her price target, as well as her 2015 sales and EPS estimates for SanDisk Corporation. She commented that a tight environment for NAND flash logic gates in 2015, due to limited 3D NAND supply, is also expected to aid the company's profit margins.
However, the big news came in mid-June when SanDisk Corporation announced a definitive agreement to acquire Fusion-IO, Inc (NYSE: FIO), a leading developer of flash-based PCIe hardware and software solutions that enhance application performance in enterprise and hyperscale datacenters, in an all-cash transaction valued at approximately $1.1 billion, net of cash assumed.
What do the SanDisk Corporation Charts Say?The latest technical chart for SanDisk Corporation shows that shares have trended strongly upward since about February:
A long term performance chart shows that SanDisk Corporation's performance was flat for a couple of years up until 2013 while Western Digital Corp and Seagate Technology PLC have also been rising:
After taking a pause earlier this year, Western Digital Corp is trending higher while Seagate Technology PLC has given a more volatile performance:
SanDisk Corporation is looking pretty good heading into earnings and there appears to be no black clouds on the immediate horizon. Hence, investors and traders alike might want to take a closer look at the stock before Wednesday.
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