Chip Stocks Slump On Earnings (SNDK, RVBD, RMBS, MU, WDX)
Shares of memory chips maker slid in early session led by two major companies SanDisk Corporation(NASDAQ:SNDK) and Riverbed Technology, Inc.(NASDAQ:RVBD), whose shares slumped after reporting weak quarterly earnings.
Riverbed Technology, Inc. (NASDAQ:RVBD) posted net income of $7 million, or 4 cents per share, down from a year ago profit of $13 million, or 8 cents per share. On an adjusted basis, the company earned 20 cents a share, matching analysts’ estimates.
Revenue during the quarter came at $183 million, up 12% from a year ago, but missing the Street’s estimates of $186.1 million.
The company projects to earn 21-22 cents a share on revenue of $193 million to $197 million in the current quarter, below analysts’ estimates of 24 cents a share on revenue of $201.9 million.
The company projects to earn 21-22 cents a share on revenue of $193 million to $197 million in the current quarter, below analysts’ estimates of 24 cents a share on revenue of $201.9 million.
SanDisk Corporation (NASDAQ:SNDK) shares also slumped in the pre-open session as the company predicts weaker than estimated second quarter outlook.
The company posted net income of $114.4 million, or 46 cents a share in its first quarter, down from a year ago profit of $224.1 million, or 92 cents a share. On an adjusted basis, earnings stood at 63 cents a share, missing analysts’ estimates by 4 cents.
Revenue during the latest quarter slid 7% year-over-year to $1.21 billion, which matched analysts’ expectations.
The company projects to generate revenue of $950 million to $1.05 billion in the current quarter, well below analysts’ forecast of $1.29 billion estimate.
Shares of RVBD slumped 26.60% to $20.45 and SNDK lost 12.53% to $35.40.
Other stocks within the sector were also under pressure with Micron Technology, Inc. (NASDAQ:MU) down 3.50% to $6.76, Western Digital Corp. (NYSE:WDC) fell 1.17%.
Rambus Inc.(NASDAQ:RMBS) fell 5.5% after reporting a first quarter loss of $27.89 million or $0.25 per share, up from a year ago loss of $4.23 million or $0.04 per share On an adjusted basis, the company earned 3 cents. Revenue during the quarter edged up to $62.86 million from $62.53 million in the same quarter last year.