Western Digital Earnings: Here’s Why Investors are Happy Now

Western Digital Corp. (NYSE:WDC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.10%.

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Western Digital Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 16.67% to $2.1 in the quarter versus EPS of $2.52 in the year-earlier quarter.

Revenue: Rose 24.02% to $3.76 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Western Digital Corp. reported adjusted EPS income of $2.1 per share. By that measure, the company beat the mean analyst estimate of $1.77. It beat the average revenue estimate of $3.61 billion.

Quoting Management: “Strong execution by our HGST and WD subsidiaries drove outstanding results in the March quarter as we continue to capitalize on the secular growth of digital data,” said Steve Milligan, president and chief executive officer. “Overall industry demand was in line with our expectations. In our business, we saw strength in enterprise, stable performance in client and consumer electronics, and some anticipated seasonal softness in Branded Products.”

Key Stats (on next page)…

Revenue decreased 1.57% from $3.82 billion in the previous quarter. EPS increased 0.48% from $2.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.8 to a profit $1.74. For the current year, the average estimate has moved up from a profit of $7.86 to a profit of $8.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)