"We believe that SanDisk's target markets are entering a strong growth phase, fueled by the accelerating convergence of consumer electronics, internet and wireless. These new and exciting markets represent immense opportunities for sustainable growth for SanDisk in the years ahead. We are optimistic about strong growth in our sales and profits in fiscal 2000," said Dr. Eli Harari, president and chief executive officer.
Screamers: SanDisk flys past estimates
Updated 1:07 PM ET January 27, 2000
By Debra McGarry, CBS MarketWatch
SUNNYVALE, Calif. (CBS.MW) -- SanDisk shares surged 27 percent Thursday after the data storage products maker posted stronger-than-expected fourth quarter earnings and announced a stock split.
Shares (SNDK) advanced 27 1/4 to 124 on volume of 2.4 million shares in recent trading.
SanDisk is a leader in flash memory applications -- integrated circuits that retain data when a power source is turned off. The company's products include memory cards for such products as Eastman Kodak's digital cameras and mobile communications devices.
Revenue shot up to $82.8 million, up 23 percent sequentially, and up from $38.2 million in the same quarter a year earlier. Increased sales of CompactFlash products helped drive the quarter. CompactFlash is one of five flash data storage product lines.
The Sunnyvale, Calif.-based company's earnings soared 130 percent to $10 million, or 30 cents a share, from last year's $3.5 million, or 13 cents.
Analysts had projected a profit of 22 cents, according to First Call.
The company also announced a 2-for-1 stock split, effective Feb. 8.
Daniel Niles and Arnab Chanda, analysts at Robertson Stephens, boosted the stock's rating to "strong buy" from "buy," with a near-term price target of $125.
The two analysts also raised their 2000 revenue estimate to $470 million from $411.9 million and per-share earnings to $1.50 from $1.15. "We are establishing a 2001 revenue estimate of $750 million and an earnings-per-share estimate of $2.00," they said in a research note.
"We believe that SanDisk's target markets are entering a strong growth phase, fueled by the accelerating convergence of consumer electronics, internet and wireless. These new and exciting markets represent immense opportunities for sustainable growth for SanDisk in the years ahead. We are optimistic about strong growth in our sales and profits in fiscal 2000," said Dr. Eli Harari, president and chief executive officer. |
