Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be reporting earnings this Thursday after market hours. Here’s what you need to know.
Western Digital beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $2.61 billion, up 30% year on year. It was a stunning quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS 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 23.9% year on year to $2.74 billion, slowing from the 85.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.58 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 six times over the last two years.
Looking at Western Digital’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 46%, beating analysts’ expectations by 1.8%, and Seagate Technology reported revenues up 21.3%, topping estimates by 3%. Micron traded down 2.9% 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 10% on average over the last month. Western Digital is up 11.8% during the same time and is heading into earnings with an average analyst price target of $128.17 (compared to the current share price of $130.54).
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