Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be reporting results tomorrow after the bell. Here’s what investors should know.
Western Digital met analysts’ revenue expectations last quarter, reporting revenues of $3.76 billion, up 40.9% year on year. It was a very strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts’ EBITDA estimates.
Is Western Digital a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Western Digital’s revenue to grow 50% year on year to $4.12 billion, a reversal from the 26.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.71 per share.
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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.3% on average.
Looking at Western Digital’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Micron Technology delivered year-on-year revenue growth of 93.3%, beating analysts’ expectations by 1.4%, and Seagate Technology reported revenues up 49.1%, topping estimates by 1.9%. Micron Technology traded up 14.6% following the results.
Read our full analysis of Micron Technology’s results here and Seagate Technology’s results here.
Investors in the semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Western Digital is up 1.5% during the same time and is heading into earnings with an average analyst price target of $85.91 (compared to the current share price of $67.44).
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