Western Digital Corporation Earnings: What To Look For From WDC

Petr Huřťák /
2022/10/26 3:04 am EDT

Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be announcing earnings results tomorrow morning. Here's what to expect.

Last quarter Western Digital Corporation reported revenues of $4.52 billion, down 7.96% year on year, missing analyst expectations by 0.98%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.

Is Western Digital Corporation buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Western Digital Corporation's revenue to decline 28.4% year on year to $3.61 billion, a deceleration on the 28.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.

Western Digital Corporation Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing eight downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Western Digital Corporation's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Lam Research reported revenues up 17.8% year on year, exceeding estimates by 3.36%. Lam Research was up 2.37%. Read our full analysis of Lam Research's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks down on average 0.04% over the last month. Western Digital Corporation is up 3.78% during the same time, and is heading into the earnings with analyst price target of $47.5, compared to share price of $34.56.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.