Western Digital (WDC) Reports Earnings Tomorrow: What To Expect

Leading data storage manufacturer Western Digital (NASDAQ: WDC) will be reporting results tomorrow after market close. Here's what to look for.

Western Digital beat analysts' revenue expectations by 3.2% last quarter, reporting revenues of $3.46 billion, up 23.3% 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' EPS 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 40% year on year to $3.74 billion, a reversal from the 41% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.17 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 only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3.1% on average.

Looking at Western Digital's peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron Technology delivered year-on-year revenue growth of 81.5%, beating analysts' expectations by 2%, and Seagate Technology reported revenues up 17.8%, in line with consensus estimates. Micron Technology traded down 7.1% following the results while Seagate Technology was up 4.1%.

Read our full analysis of Micron Technology's results here and Seagate Technology's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 4.1% on average over the last month. Western Digital is down 13% during the same time and is heading into earnings with an average analyst price target of $89.7 (compared to the current share price of $66.43).

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