SanDisk Beats Q2 Views, Shares Surge

Shares of

gained more than 4 percent in after-hours trading after the company reported stronger-than-expected results for the second quarter. The Milpitas, California-based company reported quarterly net income of $81 million, or $0.38 per share, compared to $274 million, or $1.14 per share, in the year-ago period. Its adjusted earnings declined to $0.66 per share, from $1.41 per share. Its revenue slipped to $1.24 billion from $1.63 billion. However, analysts were expecting earnings of $0.33 per share on revenue of $1.20 billion. The average estimate among 35 Estimize users was for earnings of $0.35 per share and revenue of $1.2 billion. Its gross profit shrank to $484 million in the latest quarter, versus $760 million in the year-earlier quarter. Operating income slipped to $104 million from $417 million. "During the second quarter, we strengthened our portfolio with several new product launches in both the retail and commercial channels," said Sanjay Mehrotra, president and chief executive officer, SanDisk. "We are making steady progress on all operational fronts, and remain focused on enhancing our financial performance." SanDisk shares gained 4.65 percent to $56.70 in the after-hours trading session.