SanDisk Lowers Q1 Revenue Guidance; Stock Down 7%
After the closing bell on Tuesday, leading flash memory company SanDisk (NASDAQ: SNDK ) lowered its Q1 revenue guidance. In the after hours trading session, SNDK shares were down 7% on the adjusted outlook. Management cited weaker pricing and demand trends for the revision.
SanDisk now sees Q1 revenue of $1.2 billion versus its previous guidance range of between $1.30 to $1.35 billion. This compares to current Wall Street consensus estimates of $1.34 billion for first quarter sales. The company also lowered its forecast for gross margins to 39% to 41%.
SanDisk is expected to release its fiscal Q1 earnings results on April 19. A number of other related companies are seeing activity in Tuesday's after hours session in light of SanDisk's updated guidance and the news could have implications for the entire semiconductor sector on Wednesday.
Shares of Micron Technology (NYSE: MU ) have lost nearly 2% in late trading and American Superconductor Corp. (NASDAQ: AMSC ) were down 1.50%. Hard disk drive maker Seagate Technology (NYSE: STX ) was last trading down 1.11% and Lam Research Corp. (NASDAQ:LCRX) had lost roughly 1%.
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