Sandisk Corporation (NASDAQ:SNDK) stock fell nearly 10% in Thursday's premarket session as investors questioned whether the memory-chip maker can sustain its unusually high profit margins after posting stronger-than-expected quarterly results.
The reaction contrasted with Sandisk's quarterly performance.
The company reported revenue of $8.97 billion, topping Wall Street estimates of $8.39 billion, but investors instead focused on management's outlook and whether margins can remain elevated as the memory market evolves.
The earnings report also came after analysts cautioned investors that expectations had become increasingly difficult to meet following the stock's sharp rally this year.
Analysts Urged Caution Ahead Of Results KKM Financial founder Jeff Kilburg told CNBC that investors should remain patient after Sandisk's rapid ascent following its separation from Western Digital Corp.
