SanDisk Quiets Naysayers With 3Q Earnings

SanDisk Corporation

managed to beat EPS estimates its in 3Q, which may quiet naysayers that beleive the company was destined to fall short. In its report, Oppenheimer writes "In our view, SNDK's Q3 results represent a perfect swan song, capping off CEO Eli Harari's illustrious career building SNDK into an $8.6B market cap co, with >50% gross margin, and technology/market leadership for 3-bit/cell NAND media. Moreover, by; 1) exercising pricing discipline, limiting its ASP/bit decline to ~5% despite heavy ASP pressure from lower quality 3-bit/cell NAND from Samsung, and 2) transitioning its embedded iNAND design into OEM production and launching its iSSD drive for PC/non-PC applications, SNDK delivered a metaphorical backhand slap to naysayers. Raising 2010/2011 EPS estimates to $4.42/$4.00 on better %GM profile offsetting unfavorable JPY/USD." Oppenheimer maintains its Perform rating and $42 price target. SanDisk Corporation closed yesterday at $37.12.