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Ahead of the Bell: SanDisk gains after 3Q results

AP
posted: 35 DAYS 11 HOURS AGO
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NEW YORK -Shares of SanDisk Corp. rose in premarket trading Wednesday after reporting that sales grew 14 percent in the third quarter, helping the flash memory card maker swing to a profit.
The Milpitas, Calif., company said late Tuesday that stronger demand for its products and higher prices drove sales upward, posting a profit of 75 cents per share, excluding charges, compared with a loss of 74 cents per share a year earlier. The results eclipsed Wall Street's forecast for a profit of 26 cents per share.
Shares gained $1.42, or 6.6 percent, to $22.90 in premarket activity Wednesday.
Some of that revenue growth was due to retail outlets restocking inventories, so it will likely slow, said Deutsche Bank analyst Bob Gujavarty in a note to investors, but "benign" prices and ongoing cost cuts will likely grow profit margins.
The analyst, who has a "Buy" rating on the shares, raised his price target to $32.
The company said it believes it maintained market share despite raising prices, while adding new customers in its non-retail division, Gujavarty said.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2009-10-21 08:42:45
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