SanDisk Corp. (SNDK:US), a maker of flash memory for mobile devices, rose the most in more than two years after second-quarter profit topped analysts’ estimates.
Excluding some items, profit was 21 cents a share, the Milpitas, California-based company said in a statement yesterday. Analysts had predicted 18 cents, according to data compiled by Bloomberg.
SanDisk had warned in April that flash-chip production was outpacing demand, causing prices to fall. The company said yesterday that demand for memory from corporate customers and international markets is helping the industry rebound.
“We believe that strengthening industry fundamentals and our expanding portfolio of solutions will contribute to improving financial results in the second half of 2012,” Chief Executive Officer Sanjay Mehrotra said in the statement.
SanDisk climbed 10 percent to $38.70 at the close in New York, for the biggest gain since May 2010. The shares have declined 21 percent this year.
To contact the reporter on this story: Sarah Frier in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Tom Giles at email@example.com