SanDisk Drops After Sales Forecast Falls Short of Estimates
SanDisk Corp. (SNDK), which makes memory chips used in mobile devices, fell the most in three months after forecasting second-quarter sales that fell short of some analysts’ estimates.
The Milpitas, California-based company said revenue will decline to about $1 billion, plus or minus $50 million. Analysts on average had estimated sales of $1.28 billion, according to data compiled by Bloomberg.
Chip production at SanDisk and its rivals is outpacing demand, causing prices to fall, Chief Executive Officer Sanjay Mehrotra said on a conference call with analysts yesterday. Some of the company’s customers also ordered fewer chips for mobile phones than SanDisk had predicted, he said.
SanDisk shares fell 11 percent to $35.91 at the close in New York, for the biggest decline since Jan. 26. The stock has dropped 27 percent this year.
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