Western Digital Corp Fourth Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Western Digital Corporation (NYSE:WDC) will unveil its latest earnings on Thursday, July 21, 2011. Western Digital Corporation designs, develops, manufactures and sells hard drives.

Western Digital Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 66 cents per share, a decline of 46.8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved down, but has risen from 64 cents during the last month. For the year, analysts are projecting net income of $3.11 per share, a decline of 48.2% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 66 cents per share versus a mean estimate of net income of 65 cents per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $2.26 billion in revenue this quarter, a decline of 5% from the year ago quarter. Analysts are forecasting total revenue of $9.38 billion for the year, a decline of 4.8% from last year’s revenue of $9.85 billion.

Analyst Ratings: Analysts are bullish on Western Digital as 14 analysts rate it as a buy, two rate it as a sell and five rate it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The company has now seen net income fall in each of the last three quarters. In third quarter, net income fell 63.5% from the year earlier, while the figure fell 47.6% in the second quarter and 31.6% in the first quarter.

Revenue has fallen in the past two quarters. In third quarter, revenue declined 14.7% to $2.25 billion from the year earlier quarter. In the second quarter, the figure fell 5.5%.

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

Stock Price Performance: During June 16, 2011 to July 15, 2011, the stock price had risen $3.02 (8.8%) from $34.25 to $37.27. The stock price saw one of its best stretches over the last year between June 27, 2011 and July 8, 2011 when shares rose for nine-straight days, rising 10.4% (+$3.62) over that span. It saw one of its worst periods between May 31, 2011 and June 9, 2011 when shares fell for eight-straight days, falling 8.1% (-$2.96) over that span. Shares are up $3.37 (+9.9%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!