SanDisk, the Fortune 500 flash-storage company, is struggling Thursday amid a selling frenzy that has hammered the company’s share price by around 13 percent.
The high-volume day — trading volume is at more than five times the daily average — follows the company’s second-quarter earnings report, which beat estimates but included light guidance for the third quarter.
For the second quarter, SanDisk reported adjusted earnings per share of $1.41 and revenue of $1.63 billion. CEO Sanjay Mehrotra said the quarter showed record growth in enterprise and retail categories, and that Q2 positioned the company to deliver a record-revenue year. The company also announced a third-quarter dividend of 30 cents per share to shareholders of record as of August 4, 2014.
Traders were on high alert, however, as SanDisk cautioned that third-quarter revenue would be between $1.675 billion and $1.725 billion, which is noticeably lower than consensus estimates of $1.74 billion. SanDisk also indicated that its margins would shrink.
Thursday, shares flopped around between $100 and $93, and were hovering around $94, down around 13 percent, at the time of publication.
As it stands, traders on financial social network StockTwits are eyeing the potential of buying SanDisk stock at flash-sale prices. Several said the stock is being oversold and expect it to bounce back to the high 90s by the end of the week.