SanDisk Corp (SNDK: 46.1025 0.00 0.00%) continues to shine with its fifth consecutive earnings surprise. Estimates are rising along with the share price as a result.
Company Description
SanDisk Corp. makes memory-based semiconductors for a variety of consumer electronics. The flash storage devices are used in removable cards, USB drives and are hardwired into other products.
Another Great Quarter
Back in April SanDisk reported its fifth consecutive earnings surprise. Revenue surged 65% on a year-over-year basis, to $1.1 billion. The company saw its mobile products sales increase by more than 100%.
Earnings per share came in at an impressive 88 cents, topping the Zacks Consensus Estimate by 39 cents.
Late in the press release the CEO was quoted, "With the year off to a record start, SanDisk is poised to benefit from flash memory demand in growth markets in 2010 and beyond."
Estimates Pop
Following the earnings release, SanDisk analysts raised estimates across the board. The Zacks Consensus Estimate for 2010 rose more than $1 to $3.46 per share.
Next year's projections are averaging $3.20, up 47 cents. While the earnings do tapper slightly in 2011, the estimates are calling for income to double before 2012.
The Valuations
The stock continues to trade at a bargain. SNDK is exchanging hands 14 times 2011 earnings. With a PEG of 0.8, that growth is also coming at a discount.
The Chart
Shares of SNDK have been on a tear since the original feature in March. While the stock is showing some volatility as of late, the overall trend is clearly higher.
Read the March 9th Feature Here
Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service
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