Sandisk Crushes Estimates with Strong Q2 Results and Bullish Q3 Guidance

Sandisk, a subsidiary of Western Digital, delivered exceptional second-quarter financial results, significantly exceeding market expectations for both revenue and earnings per share (EPS). The company's robust performance was primarily driven by a substantial surge in memory chip Average Selling Prices (ASPs) across all business segments, including data centers. Gross margins saw a dramatic increase, jumping from 29.9% in the first quarter to 51.1% in the second quarter, signaling strong operational leverage. Looking ahead, Sandisk issued a bullish outlook for the third quarter, projecting revenues between $4.4 billion and $4.8 billion and EPS in the range of $12 to $14. Management expects gross margins to continue their upward trajectory, potentially reaching 66.9% in Q3 as price momentum remains resilient. This 'beat-and-raise' performance highlights a powerful growth cycle within the memory industry, likely triggering upward price target revisions for peers like Micron (MU) and Seagate (STX).