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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (25590)	4/15/2004 8:46:26 AM
From: Steve 667	Respond to of 60323

SNDK SanDisk Earnings Color (32.51 ) Sandisk reported MarQ results that exceeded Morgan Stanley rev/EPS expectations. Royalty revenues of $48M and increased operational efficiencies were the key drivers. The firm raises 2Q04 rev est to $403M from $391M, F05 rev est moves to $2.2B from $2.1B, F04 EPS est moves to $1.30 from $1.25 and F05 EPS est goes to $1.45 from $1.35. According to the firm, digital cameras, camera phones, USB drives and digital camcorders should continue to fuel demand for NAND flash. Consequently, SanDisk's fundamentals should remain robust. Although valuations are relatively high, firms Attractive industry view reflects their belief that solid increases in earnings power and positive surprise potential should support higher stock prices... JP Morgan reiterates Overweight, noting that SNDK is trading at 23.2x firms F04 EPS est, a 24% discount to their 2003-2007 pre-tax profit CAGR estimate of 30.7%. The firm believes SNDK faces strong demand in 2H04 and stabilizing gross margins, which will buoy the stock as the summer approaches... Thomas Weisel comments that it does not believe shares should be punished as the increased royalty stream appears sustainable... SNDK tumbled to $27.55 in after hours trading