NEW YORK (TheStreet) -- Shares of SanDisk were gaining 0.9% to $70.92 Wednesday morning ahead of the chipmaker's first quarter earnings release after the market close later in the day. Analysts surveyed by Thomson Reuters expect SanDisk to report earnings of 66 cents a share and revenue of $1.306 billion for the first quarter. On March 26 SanDisk lowered its revenue guidance for the first quarter, saying it expects to report revenue of about $1.3 billion for the quarter, down from its previous range of $1.4 billion to $1.45 billion. SanDisk reported earnings of $1.44 a share and revenue of $1.511 billion for the first quarter of 2014, which beat analysts' estimates for the quarter. The Milpitas, CA-based company designs, develops and manufactures NAND flash memory, DRAM memory, memory cards, and other memory and storage solutions. TheStreet Ratings team rates SANDISK CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate SANDISK CORP (SNDK) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth significantly trails the industry average of 31.9%. Since the same quarter one year prior, revenues slightly increased by 0.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market on the basis of return on equity, SANDISK CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500. 48.54% is the gross profit margin for SANDISK CORP which we consider to be strong. Regardless of SNDK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SNDK's net profit margin of 11.63% is significantly lower than the industry average. Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.50 is sturdy. The share price of SANDISK CORP has not done very well: it is down 10.49% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this. You can view the full analysis from the report here: SNDK Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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