Sandisk (SNDK) Beats Q1 and Raises Q2 Guidance
Sandisk reported a loss of -48c and revenue of $659 million vs. estimates of -76c and $537 million. The company also raised guidance for next quarter to $650-$725 million vs. $570 million estimate.
CEO Eli Harari was much more positive on the call than last quarter. He said demand was stronger than expected and that it is holding up in April. They plan to even raise prices in Q2. The CFO remarked this is the first time in her five years at the company that there will be an uptick in prices per gigabyte this quarter. The key driver is the higher flash content in smart-phones like Apple’s iPhone.
When asked about a potential equity offering, she said they can move fast as they have filed the shelf. However there are “no definitive plans” on a capital raise at the moment.