SanDisk stock sinks as revenue forecast falls short of expectations

Sandisk (SNDK) stock sank 8% in after-hours after the flash memory and storage manufacturer posted fiscal fourth quarter earnings on Wednesday. The stock sank as revenue guidance for the company's fiscal first quarter came in below expectations. SanDisk said fiscal fourth quarter revenue was $8.79 billion, beating Wall Street consensus estimates of $8.64 billion. The company noted that revenue growth came from approximately one-third higher volumes and two-thirds higher pricing. Revenue guidance came in below expectations. The company sees fiscal first quarter revenue of $10.3 billion to $10.8 billion, versus estimates of $11.16 billion. SanDisk also delivered adjusted earnings per share of $39.25, topping estimates of $34.37. The forecast for adjusted earnings per share for the current quarter was between $44 and $46, versus estimates of $45.58. SanDisk also expanded its share repurchase authorization by approving an additional $14 billion buyback program. Wall Street was expecting Sandisk to continue benefiting from AI infrastructure spend, particularly demand for storage and memory products used in data centers. Earlier this week, Sandisk shares jumped after the company, in collaboration with memory maker SK Hynix (SKHY), released a new hardware blueprint designed to make AI chips faster and cheaper to run. By creating a shared standard for high-speed memory, the partnership aims to reduce data center costs and accelerate the rollout of advanced AI apps.