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

Jabin Bastian /
2023/01/30 4:30 am EST

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 reported revenues of $3.73 billion, down 26% year on year, beating analyst revenue expectations by 3.41%. It was a weak quarter for the company, with declining revenue and underwhelming revenue guidance for the next quarter.

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

This quarter analysts are expecting Western Digital's revenue to decline 38.4% year on year to $2.97 billion, a deceleration on the 22.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 per share.

Western Digital 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's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Seagate Technology reported revenue decline of 39.4% year on year, exceeding estimates by 3.21%. Seagate Technology was up 6.16% 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 18.1% over the last month. Western Digital is up 36.8% during the same time, and is heading into the earnings with analyst price target of $44.89, compared to share price of $44.63.

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.