Western Digital Corporation (WDC) Q1 Earnings Report Preview: What To Look For

Kayode Omotosho /
2022/04/27 8:19 am EDT
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Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be reporting results tomorrow after market close. Here's what to look for.

Last quarter Western Digital Corporation reported revenues of $4.83 billion, up 22.5% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a beat on the bottom line but revenue guidance for the next quarter below analysts' estimates.

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 grow 4.8% year on year to $4.33 billion, improving on the 0.91% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.49 per share.

Western Digital Corporation Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing two upward and two 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. Texas Instruments reported revenues up 14.3% year on year, exceeding estimates by 3.65%. Texas Instruments traded down 7.51% on the results. Read our full analysis of  Texas Instruments's results here.

The technology sell-off has been putting pressure on stocks since November and semiconductors stocks have not been spared, with share price down on average 15.4% over the last month. Western Digital Corporation is down 4.47% during the same time, and is heading into the earnings with analyst price target of $69.4, compared to share price of $48.62.

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.