Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be reporting results this Thursday after market close. Here’s what investors should know.
Western Digital beat analysts’ revenue expectations last quarter, reporting revenues of $3.02 billion, up 25.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS and 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, the market is expecting Western Digital’s revenue to grow 42% year on year, improving from the 30.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Western Digital’s peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 196%, beating analysts’ expectations by 20.1%, and Seagate reported revenues up 44.1%, topping estimates by 5.4%. Micron traded down 3.8% following the results.
Read our full analysis of Micron’s results here and Seagate’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 43% on average over the last month. Western Digital is up 70.1% during the same time and is heading into earnings with an average analyst price target of $371.70 (compared to the current share price of $428.02).
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