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Sandisk Stock Drops as Profit Estimates Come Up Short on Fab Startup Costs

1. SNDK's earnings guidance missed estimates due to higher startup costs. 2. Expected EPS for Q1 2026 is lower than analysts' forecasts. 3. Fab startup costs increased to $60 million, affecting profit projections. 4. Company posted better-than-expected Q4 results despite outlook concerns. 5. Shares have dropped nearly 5%, but are up 25% since February.

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FAQ

Why Bearish?

The missed earnings guidance indicates financial strain and negative sentiment among investors, reminiscent of prior instances where such guidance led to stock price drops.

How important is it?

Investor focus on earnings guidance makes this news highly relevant for SNDK's stock price.

Why Short Term?

The immediate impact is negative due to lowering profit expectations, but as startup costs decrease, long-term recovery is possible.

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