Our SanDisk Call: $SNDK reports in a few hours. The revenue beat is expected. Margin decides the print. Street revenue consensus is $8.42B, already above management’s $7.75B - $8.25B guide. But consensus EPS of $34.67 still appears to assume gross margin near 80%, around the midpoint of management’s 79% to 81% range. Those assumptions do not sit comfortably together. The Street has moved above management on revenue while remaining anchored to management on margin. Our view is that NAND pricing changed too quickly for the April 30 guide to capture, and gross margin is where that change should appear. Our call: - SanDisk fiscal Q4 non-GAAP gross margin above 81%, exceeding the top of management’s guide. - Central case: approximately 84%. Management already underestimated the cycle onc
View on X ↗