SanDisk (NASDAQ:SNDK) is expected to report Q4 earnings after the market close on Wednesday, January 25, with a conference call scheduled for 5:00 pm ET. The consensus estimate is $1.26 for EPS and $1.57B for revenue, according to First Call.

Last quarter, the company beat estimates by 12c, marking the fourth straight quarter of beating estimates. SanDisk (NASDAQ:SNDK) expects the growing demand for its products to continue and supply to remain unhindered. Hence, the company forecasted for Q4 revenue of $1.5B-$1.6B.

SanDisk (NASDAQ:SNDK) expects Q4 gross margin to remain depressed due to Fab 5 start-up costs and currency exchange. The company expects non-GAAP product gross margin of 38%-40%, and total non-GAAP gross margin, including license and royalty, of 42%-44%. Non-GAAP operating expenses are forecasted at $225M-$235M, with the expected increase coming primarily from growth in the R&D investment level, and a seasonal increase in sales and marketing spending. SanDisk (NASDAQ:SNDK) guided FY11 CapEx to $1.4B-$1.6B — seeing significant investments in Q4 for both 24-nanometer and 19-nanometer technology transitions and Fab 5 capacity ramp.

Deutsche Bank expects benign pricing environment to be a slight tailwind to margins and EPS and deliver modest upside to Deutshe’s EPS but largely in-line with the Street. The firm believes demand overall was solid but with many cross currents in the quarter, it doesn’t expect much revenue upside. For Q1, Deutsche expects a better than seasonal quarter. Deutsche believes the NAND market will remain in supply and demand balance through early 2012 as incremental demand from SSDs offset typical seasonal declines in retail markets. Consensus for 2012 is $5.07 on $6.65B in revenue.

Competitors to Watch: Western Digital Corp. (NYSE:WDC), STEC, Inc. (NASDAQ:STEC), OCZ Technology Group Inc. (NASDAQ:OCZ), Micron Technology, Inc. (NASDAQ:MU), EMC Corporation (NYSE:EMC), Seagate Technology PLC (NASDAQ:STX), Imation Corp. (NYSE:IMN), Quantum Corporation (NYSE:QTM), Hutchinson Technology Inc. (NASDAQ:HTCH), and Apple Inc. (NASDAQ:AAPL).

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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