Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be announcing earnings results this Thursday afternoon. Here’s what to expect.
Western Digital beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $2.82 billion, up 27.4% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Western Digital a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Western Digital’s revenue to grow 22.6% year on year to $2.95 billion, slowing from the 76.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.93 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Western Digital has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Western Digital’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 56.7%, beating analysts’ expectations by 5%, and Seagate Technology reported revenues up 21.5%, topping estimates by 2.6%. Micron traded up 10.2% following the results.
Read our full analysis of Micron’s results here and Seagate Technology’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 18.3% on average over the last month. Western Digital is up 49.4% during the same time and is heading into earnings with an average analyst price target of $229.38 (compared to the current share price of $268.52).
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