Shares of Sandisk fell 10% during the pre-market session on Thursday, August 6 after the memory maker's revenue forecast for the first quarter missed estimates despite delivering strong quarterly results.
Sandisk shares declined 9.84% to $132.92 apiece by around 4:50 pm, while the stock closed 5.4% lower. The fall in shares dragged down Nasdaq futures, trading 0.42% down.
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The computer hardware company sees first quarter revenue in the range of $10.3 billion to 10.8 billion, below Bloomberg consensus estimate of $11.16 billion.
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The drop in Sandisk shares also come amid volatilty in chip stocks since last few trading sessions as profit-taking continues after massive sell-offs, amid concerns over heavy artificial intelligence spending by big tech companies, and pressures from new domestic chip production and memory IPOs in China, according to reports.
Sandisk Results
In the fourth quarter, Sandisk reported revenue of $8.97 billion, up 51% sequentially, with net income at $6.90 billion, the company informed in a release. The sequential revenue growth was around one-third from higher volumes and two-thirds from higher pricing.
After announcing five New Business Model agreements during April earnings call, the company signed five additional agreements, including three agreements with new customers and two deals expanding on previously signed deals.
Sandisk also expanded share repurchase authorisation in the quarter, with the Board of Directors approving an additional $14 billion buyback program, bringing total remaining authorisation to $15.5 billion.
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