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Western Digital (WDC) Posts Big Earnings Beat, Revenues Rise Over 7%

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Western Digital Corp. (WDC - Free Report) just released its latest quarterly financial results, posting earnings of $3.63 per share and revenues of $5 billion.

Currently, WDC is a Zacks Rank #1 (Strong Buy), but that could change based on today’s results. Estimates have increased by 14 cents for the current year over the last two months, and the Zacks Consensus sits at $14.05 per share.

Shares of the memory chip maker have increased just a little over 1% in the last year and closed the trading day up over 2.3%. The stock is up about 1.5% in after-hours trading shortly after the earnings report was released.

Western Digital:

Beat earnings estimates. The company reported earnings of $3.63 per share, surging past the Zacks Consensus Estimate of $3.31 per share. Net income was $1.1 billion for the quarter.

Beat revenues estimates. The company saw revenues of $5 billion, also topping our consensus estimate of $4.94 billion and growing 7.5% year-over-year.

GAAP operating income was $914 million.

Additionally, WDC generated $1 billion in cash from operations during Q3, and ended the period with $5.1 billion of total cash, cash equivalents and available-for-sale securities. The company declared a cash dividend of 50 cents per share as well.

“The power and agility of our platform and our global team’s sustained focus on operational execution drove another quarter of strong financial performance for Western Digital,” said Steve Milligan, chief executive officer. “We saw particular strength in our high capacity enterprise hard drives, which achieved record quarterly revenue.”

Here’s a graph that looks at Western Digital’s recent earnings performance:

Western Digital Corporation Price, Consensus and EPS Surprise

Western Digital Corporation Price, Consensus and EPS Surprise | Western Digital Corporation Quote

Western Digital addresses ever-changing market needs by providing a full portfolio of compelling, high-quality storage solutions with customer-focused innovation, high efficiency, flexibility and speed. Its products are marketed under the HGST, SanDisk and WD brands to OEMs, distributors, resellers, cloud infrastructure providers and consumers. The company's devices and solutions are made using either rotating magnetic or NAND-flash technologies.

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