SanDisk Corp. (SNDK) reported third-quarter results after Thursday's closing bell, and on paper, they were spectacular. The company beat analyst estimates on both the top and bottom lines — by a lot. But the stock still fell. Let's dig in.

The Numbers

SanDisk reported quarterly earnings of $23.41 per share, which blew past the analyst consensus estimate of $14.43 by 62.23%. Revenue came in at $5.95 billion, beating the Street estimate of $4.68 billion by 27.03% and more than tripling the $1.7 billion from the same period last year.

The company attributed the revenue outperformance to a mix shift toward higher-value customers — datacenter revenue surged 233% — and higher pricing.

“This quarter marks a fundamental inflection point for Sandisk — where our technology leadership is enabling a deliberate shift in our mix toward the highest-value end markets, led by Datacenter,” said David Goeckeler, CEO of Sandisk.

Looking Ahead

SanDisk's fourth-quarter guidance was also strong. The company expects adjusted EPS of $30 to $33, versus the $22.01 analyst estimate, and revenue of $7.75 billion to $8.25 billion, versus the $6.35 billion estimate.

So why did the stock drop 7.53% to $1,015 in Thursday's extended trading? Sometimes, even a blowout quarter isn't enough if the market was expecting even more. Or perhaps investors are taking profits after a big run. Either way, SanDisk's fundamentals look solid.