Western Digital Corp Earnings Cheat Sheet: Investors Disappointed by Profit and Sales Drop

S&P 500 (NYSE:SPY) component Western Digital Corporation (NYSE:WDC) reported its results for the third quarter. Western Digital Corporation designs, develops, manufactures and sells hard drives.

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Western Digital Earnings Cheat Sheet for the Third Quarter

Results: Net income for Western Digital Corporation (NYSE:WDC) fell to $146 million (62 cents/share) vs. $400 million ($1.71/share) a year earlier. A decline of 63.5% from the year earlier quarter.

Revenue: Fell 14.7% to $2.25 billion YoY.

Actual vs. Wall St. Expectations: WDC (NYSE:WDC) fell short of the mean analyst estimate of 65 cents/share. Estimates ranged from 59 cents per share to 83 cents per share.

Quoting Management: “The March quarter in the hard drive industry was impacted by two significant developments—the delayed supply of Industry CPUs to PC makers and the tragic events in Japan,” said John Coyne, president and chief executive officer. “While demand for hard drives in the quarter got off to a slow start, it later picked up as availability of CPUs improved and as fears took hold of component shortages related to the events in Japan.”

Key Stats: The company has now seen net income fall in each of the last four quarters. In the second quarter, net income fell 47.6% while the figure fell 31.6% in the first quarter and 34.7% three quarters ago.

Over the last five quarters, revenue has increased 15.5% on average year over year. The biggest increase came in the third quarter of the last fiscal year, when revenue rose 65.9% from the year earlier quarter.

Competitors to Watch: Seagate Technology PLC (NASDAQ:STX), EMC Corporation (NYSE:EMC), STEC (NASDAQ:STEC), SanDisk (NASDAQ:SNDK), Dot Hill (NASDAQ:HILL), Overland Storage (NASDAQ:OVRL), Hutchinson (NASDAQ:HTCH), Quantum (NYSE:QTM), ADPT Corp (ADPT), OCZ Tech (NASDAQ:OCZ) and Toshiba Corp. (TOSB).

Today’s Performance: Shares of WDC are trading at $40.34 as of April 20, 2011 at 4:58 PM ET, down .76% from the previous closing price of $39.51.


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