Key Morningstar Metrics for SanDisk

• : $870.00
• : ★★

• Morningstar Economic Moat Rating

  : None

• Morningstar Uncertainty Rating

  : Very High

What We Thought of SanDisk’s Earnings

SanDisk’s SNDK September-quarter results were again exceptional and above guidance. Sales rose 378% year on year to $11 billion, while non-GAAP gross margin rose 55 points year on year to 85%. December-quarter guidance implies further improvement and year-on-year growth again above 300%.

Why it matters: Sky-high pricing continues to drive results, but it looks to be decelerating sequentially. To us, this indicates a pricing peak is on the horizon, in line with our thesis. Pricing is decelerating earlier and more quickly than we…