Western Digital Corporation (WDC) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2022/08/04 4:15 am EDT

Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be reporting earnings tomorrow morning. Here's what investors should know.

Last quarter Western Digital Corporation reported revenues of $4.38 billion, up 5.89% year on year, beating analyst revenue expectations by 1.05%. It was a solid quarter for the company, with a beat on the bottom line and a significant improvement in operating margin.

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 6.91% year on year to $4.57 billion, a further deceleration on the 14.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.74 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 six 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 Q4 earnings results, giving us a hint of what we can expect. Seagate Technology reported revenue decline of 12.7% year on year, missing analyst estimates by 5.72%. The company traded flat on the results. Read our full analysis of Seagate Technology's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 26.9% over the last month. Western Digital Corporation is up 17% during the same time, and is heading into the earnings with analyst price target of $67.6, compared to share price of $49.5.

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.