Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be reporting earnings this Wednesday after market close. Here’s what investors should know.

Western Digital beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $2.29 billion, up 30.9% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.

Is Western Digital a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Western Digital’s revenue to grow 24% year on year to $2.49 billion, a reversal from the 25% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.48 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 11 analysts). Western Digital has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Western Digital’s peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 36.6%, beating analysts’ expectations by 4.9%, and Amkor reported revenues up 3.4%, topping estimates by 6.3%. Micron traded down 1.2% following the results.

Read our full analysis of Micron’s results here and Amkor’s results here.

There has been positive sentiment among investors in the semiconductors segment, with share prices up 4.9% on average over the last month. Western Digital is up 8.1% during the same time and is heading into earnings with an average analyst price target of $67.57 (compared to the current share price of $69.19).

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