January 27, 2012
SanDisk Corporation (NASDAQ:SNDK) faced its biggest drop over the recent month of trading.
In the course of trading SNDK fell by 11.37% and lost $5.95 to hit $46.39 before the closing bell. Over the recent year SNDK was trading as high as $53.46 and reached its annual low at $32.24.
The company’s market capitalization amounts to 11.15 billion which indicates that the company hits the list of large cap companies.
The unusual price downgrade resulted in the increasing trading volume of 31.03 million, which is more than sevenfold higher than the company’s average trading volume of 4.65 million calculated on the basis of 30 days. Currently the company owns 240.30 million outstanding shares distributed between stock market portfolios of multiple investors.
SNDK revealed its first forecasted quarter revenue of $1.3 to $1.35 billion which failed to meet the analysts’ estimates of $1.46 billion. Furthermore, the expected company’s full-year revenue amounts to the sum in the range between $6.2-6.6 billion, while the industry analysts predicted the corresponding results of $6.66.
As it was explained by SNDK CEO, the decrease in the expected company’s revenues results from the lowered demand for the company’s product from certain of their mobile customers. This fact is expected to affect the company’s financial results in the first half of 2012.
Moreover, the company is currently engaged in enhancing and diversifying its customer data-base, which is primarily aimed at getting back to the stable revenue growth and positive financial results.
But he said that the diversity of SanDisk's customer base, growing momentum in its solid-state drive business and other demand drivers will allow the company to return to "healthy" revenue growth in the second half of the year.
SanDisk Corporation is a renowned manufacturer and provider of memory storage solutions including flash memory cards for mobile phones and tablet computers.
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