SanDisk Corp. (SNDK) shares plummeted 10.03% in pre-market trading on Friday, extending the after-hours sell-off following the release of its fiscal fourth-quarter 2025 financial results. The sharp decline came despite the company reporting better-than-expected earnings and revenue for the quarter, as weak forward guidance overshadowed the positive results.
SanDisk reported non-GAAP net income of $0.29 per diluted share, significantly surpassing the analyst consensus estimate of $0.04. Revenue for the quarter rose to $1.901 billion, beating analyst expectations of $1.813 billion. However, the reported earnings marked a substantial decrease from $1.24 per share in the same quarter a year ago, highlighting ongoing challenges in the company's business environment.
The primary driver of the stock's decline appears to be SanDisk's guidance for the upcoming quarter. The company forecasts Q1 non-GAAP earnings per share between $0.70 and $0.90 on revenue of $2.1 billion to $2.2 billion. While the revenue projection exceeds analyst expectations of $2 billion, the earnings guidance suggests potential challenges ahead, likely contributing to investor concerns. The market's negative reaction underscores the importance of forward-looking statements in shaping investor sentiment, even in the face of strong current-quarter performance.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.