Jim Cramer highlighted Sandisk Corporation (NASDAQ:SNDK) capital-return plans on the August 24 episode of Mad Money, as he said:
I do not envy the executives trying to appease shareholders with giant returns of capital. Most companies have a preset pattern. The average company in the S&P 500 returns a great deal of the profits to shareholders. Some companies take a pretty extreme approach. Apple returned roughly 94% of its profits, mostly in the form of buybacks, and it dramatically shrunk its share count. That worked fabulously for years as the buyback crunched on and on...
Sandisk has a similar playbook. At its August 13th investor day, the memory maker dazzled with the announcement that it intends to return 100% of its excess cash to shareholders. The company rewarded shareholders with $4.5 billion in buybacks in its fiscal fourth quarter alone. Also added $14 billion to its repurchase authorization. That's one reason why the stock's up 529% year to date. That's the number one performer in the S&P 500… They kind of issued a put, a floor on the stock. Dell, the third-best performer, up 244%, wow, returned 126% of its net income to shareholders, 126%, mostly through buybacks. Net income was $5.9 billion. Buybacks were about $7.5 billion. I know that sounds reckless, but Dell's operating cash flow is more than $11 billion. They can afford it.
Sandisk Corporation's (NASDAQ:SNDK) fiscal 2026 results explain why investors have been willing to ***** ign the company a dramatically higher valuation. Revenue reached $20.25 billion, up 175% from fiscal 2025, while GAAP net income reached $11.43 billion, compared with a $1.64 billion loss a year earlier. Q4 revenue alone reached $8.97 billion, up 51% sequentially and 372% year over year. The most striking change was profitability. The company's fourth-quarter non-GAAP gross margin reached 84.6%, compared with 78.4% in the previous quarter and 26.4% in the year-ago quarter.
It is worth noting that the company said roughly two-thirds of its sequential fourth-quarter revenue increase came from pricing, while about one-third came from higher volume. If NAND prices remain elevated, Sandisk's unusually high gross margins give it substantial operating leverage.
#quarter #year #sandisk #revenue
I do not envy the executives trying to appease shareholders with giant returns of capital. Most companies have a preset pattern. The average company in the S&P 500 returns a great deal of the profits to shareholders. Some companies take a pretty extreme approach. Apple returned roughly 94% of its profits, mostly in the form of buybacks, and it dramatically shrunk its share count. That worked fabulously for years as the buyback crunched on and on...
Sandisk has a similar playbook. At its August 13th investor day, the memory maker dazzled with the announcement that it intends to return 100% of its excess cash to shareholders. The company rewarded shareholders with $4.5 billion in buybacks in its fiscal fourth quarter alone. Also added $14 billion to its repurchase authorization. That's one reason why the stock's up 529% year to date. That's the number one performer in the S&P 500… They kind of issued a put, a floor on the stock. Dell, the third-best performer, up 244%, wow, returned 126% of its net income to shareholders, 126%, mostly through buybacks. Net income was $5.9 billion. Buybacks were about $7.5 billion. I know that sounds reckless, but Dell's operating cash flow is more than $11 billion. They can afford it.
Sandisk Corporation's (NASDAQ:SNDK) fiscal 2026 results explain why investors have been willing to ***** ign the company a dramatically higher valuation. Revenue reached $20.25 billion, up 175% from fiscal 2025, while GAAP net income reached $11.43 billion, compared with a $1.64 billion loss a year earlier. Q4 revenue alone reached $8.97 billion, up 51% sequentially and 372% year over year. The most striking change was profitability. The company's fourth-quarter non-GAAP gross margin reached 84.6%, compared with 78.4% in the previous quarter and 26.4% in the year-ago quarter.
It is worth noting that the company said roughly two-thirds of its sequential fourth-quarter revenue increase came from pricing, while about one-third came from higher volume. If NAND prices remain elevated, Sandisk's unusually high gross margins give it substantial operating leverage.
#quarter #year #sandisk #revenue
12 hours ago
