Western Digital Earnings Cheat Sheet: Earnings Higher Than Expected

S&P 500 (NYSE:SPY) component Western Digital Corporation (NYSE:WDC) reported net income above Wall Street’s expectations for the first quarter. Western Digital designs, develops, manufactures, and sells hard drives.

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Western Digital Earnings Cheat Sheet for the First Quarter

Results: Net income for the data storage devices company rose to $239 million ($1.01 per share) vs. $197 million (84 cents per share) in the same quarter a year earlier. This marks a rise of 21.3% from the year earlier quarter.

Revenue: Rose 12.4% to $2.69 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: WDC reported adjusted net income of $1.10 per share. By that measure, the company beat the mean estimate of 95 cents per share. It beat the average revenue estimate of $2.48 billion.

Key Stats:

Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the fourth quarter of the last fiscal year, net income fell 40.2% from the year earlier, while the figure fell 63.5% in the third quarter of the last fiscal year, 47.6% in the second quarter of the last fiscal year and 31.6% in the first quarter of the last fiscal year.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 67 cents per share.

The company’s revenue has now risen for two straight quarters. In the fourth quarter of the last fiscal year, revenue increased 0.9% to $2.4 billion from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is $1.05 per share, down from $1.13 ninety days ago. For the fiscal year, the average estimate has moved down from $3.96 a share to $3.85 over the last sixty days.

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).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)