Sandisk Shares Drop 6% Despite $5.95B Q3 Revenue and $23.41 EPS
SNDK•Sandisk reported Q3 revenue of $5.95B up from $4.72B and adjusted EPS of $23.41 beating expectations of $14.51, yet its stock slid over 6% premarket. The company forecast Q4 revenue of $7.75B–$8.25B versus $6.65B consensus and year-to-date gains near 300%.
1. Q3 Earnings Beats Expectations
Sandisk reported Q3 revenue of $5.95 billion, up from $4.72 billion a year earlier, and delivered adjusted EPS of $23.41, well above the $14.51 consensus estimate. Strong top- and bottom-line performance underscored robust demand in the memory market.
2. Stock Reaction and Year-to-Date Rally
Despite the earnings beat, Sandisk shares fell more than 6% in premarket trading as investors took profits after a powerful rally. The stock has climbed nearly 300% year to date and hit record highs just before the earnings release.
3. Q4 Guidance and Analyst Outlook
The company forecast Q4 revenue between $7.75 billion and $8.25 billion, exceeding the $6.65 billion consensus. One analyst warned that the current pricing upcycle may be finite, while another firm raised its price target to $2,000 from $1,000 on sustained memory tightness.
