We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Western Digital (WDC) in Q1 Earnings?
Read MoreHide Full Article
Western Digital (WDC - Free Report) is slated to report first-quarter fiscal 2019 results on Oct 25.
Notably, the company outpaced the Zacks Consensus Estimate in the trailing four quarters, registering an average positive earnings surprise of 6.2%.
In the fourth quarter of fiscal 2018, Western Digital reported non-GAAP earnings of $3.61 per share, which beat the Zacks Consensus Estimate by 9 cents. The figure also surged 23.2% from the year-ago quarter.
Further, revenues increased 5.7% year over year to $5.12 billion and surpassed the Zacks Consensus Estimate of $5.06 billion.
The top line reflected the company’s strong execution across broad end markets and diversified product portfolio.
What to Expect?
For first-quarter fiscal 2019, management anticipates non-GAAP earnings between $3 and $3.10 per share. The Zacks Consensus Estimate is pegged at $3.06, representing a decline of 14% from the year-ago quarter.
Further, revenues are expected to be $5.10-$5.20 billion. The Zacks Consensus Estimate is pegged at $5.136 billion, representing a decline of roughly 0.8% from the year-ago quarter.
Let’s see how things are shaping up for this announcement.
Factors at Play
Strong demand for hard drive and NAND-based products across all categories of customers, largely driven by cloud-based applications, is expected to drive fiscal first-quarter results.
In the fourth quarter, the company shipped 39 million hard disk drives (HDDs) at an average selling price ("ASP") of $70. The reported shipments were lower than the year-ago figure of 39.3 million. The company shipped 106.5 exabytes, excluding non-memory products.
For the fiscal first quarter, the Zacks Consensus Estimate for total unit shipments is pegged at 41.16 million at an ASP of $64.
Strength in connected home, automotive, surveillance and industrial verticals are expected to drive Client devices revenues, which were $2.47 billion in the last reported quarter. Further, robust adoption of NVMe client SSDs, iNAND solutions and new design wins remain other positives.
The Zacks Consensus Estimate for Client devices revenues currently stands at $2.464 billion.
Solid adoption of SanDisk, G-Tech and WD brands are expected to improve Client solutions revenues, which were $1.03 billion in the last reported quarter. The Zacks Consensus Estimate for Client devices revenues currently stands at $1.087 billion.
Western Digital is also significantly benefiting from synergies related to SanDisk and HGST acquisitions.
We believe, solid adoption of flash-based products —on the back of increase in capacity enterprise products, and demand for data center devices and cloud solutions — is noteworthy. The 12 TB drive, in particular, is witnessing rapid adoption among other capacities across emerging and established markets.
Western Digital launched Ultrastar DC SS530 SAS SSD, devised in partnership with Intel (INTC - Free Report) , in the quarter under review. The latest drive is available to select OEM partners.
The company’s strength in BiCS3 and BiCS4 offerings deserve a special mention. Western Digital began sampling its 1.33 TB, four-bits-per-cell infrastructure for 96-layer 3D NAND BiCS4 device.
The company also expanded its data center solutions portfolio. The company unveiled new ActiveScale5.3 object storage system, Ultrastar Serv60+8 hybrid storage server platform and new enhancements to its IntelliFlash N Series family.
We believe that new enhancements to its data center storage portfolio and other product rollouts are likely to aid the company in reinforcing its market position against the likes of Seagate (STX - Free Report) .
Western Digital Corporation Price and EPS Surprise
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Western Digital has a Zacks Rank #3 and an Earnings ESP of -1.02%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock That Warrants a Look
Here is a company, which, per our model, has the right combination of elements to post an earnings beat in the to-be-reported quarter:
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
What's in the Cards for Western Digital (WDC) in Q1 Earnings?
Western Digital (WDC - Free Report) is slated to report first-quarter fiscal 2019 results on Oct 25.
Notably, the company outpaced the Zacks Consensus Estimate in the trailing four quarters, registering an average positive earnings surprise of 6.2%.
In the fourth quarter of fiscal 2018, Western Digital reported non-GAAP earnings of $3.61 per share, which beat the Zacks Consensus Estimate by 9 cents. The figure also surged 23.2% from the year-ago quarter.
Further, revenues increased 5.7% year over year to $5.12 billion and surpassed the Zacks Consensus Estimate of $5.06 billion.
The top line reflected the company’s strong execution across broad end markets and diversified product portfolio.
What to Expect?
For first-quarter fiscal 2019, management anticipates non-GAAP earnings between $3 and $3.10 per share. The Zacks Consensus Estimate is pegged at $3.06, representing a decline of 14% from the year-ago quarter.
Further, revenues are expected to be $5.10-$5.20 billion. The Zacks Consensus Estimate is pegged at $5.136 billion, representing a decline of roughly 0.8% from the year-ago quarter.
Let’s see how things are shaping up for this announcement.
Factors at Play
Strong demand for hard drive and NAND-based products across all categories of customers, largely driven by cloud-based applications, is expected to drive fiscal first-quarter results.
In the fourth quarter, the company shipped 39 million hard disk drives (HDDs) at an average selling price ("ASP") of $70. The reported shipments were lower than the year-ago figure of 39.3 million. The company shipped 106.5 exabytes, excluding non-memory products.
For the fiscal first quarter, the Zacks Consensus Estimate for total unit shipments is pegged at 41.16 million at an ASP of $64.
Strength in connected home, automotive, surveillance and industrial verticals are expected to drive Client devices revenues, which were $2.47 billion in the last reported quarter. Further, robust adoption of NVMe client SSDs, iNAND solutions and new design wins remain other positives.
The Zacks Consensus Estimate for Client devices revenues currently stands at $2.464 billion.
Solid adoption of SanDisk, G-Tech and WD brands are expected to improve Client solutions revenues, which were $1.03 billion in the last reported quarter. The Zacks Consensus Estimate for Client devices revenues currently stands at $1.087 billion.
Western Digital is also significantly benefiting from synergies related to SanDisk and HGST acquisitions.
We believe, solid adoption of flash-based products —on the back of increase in capacity enterprise products, and demand for data center devices and cloud solutions — is noteworthy. The 12 TB drive, in particular, is witnessing rapid adoption among other capacities across emerging and established markets.
Western Digital launched Ultrastar DC SS530 SAS SSD, devised in partnership with Intel (INTC - Free Report) , in the quarter under review. The latest drive is available to select OEM partners.
The company’s strength in BiCS3 and BiCS4 offerings deserve a special mention. Western Digital began sampling its 1.33 TB, four-bits-per-cell infrastructure for 96-layer 3D NAND BiCS4 device.
The company also expanded its data center solutions portfolio. The company unveiled new ActiveScale5.3 object storage system, Ultrastar Serv60+8 hybrid storage server platform and new enhancements to its IntelliFlash N Series family.
We believe that new enhancements to its data center storage portfolio and other product rollouts are likely to aid the company in reinforcing its market position against the likes of Seagate (STX - Free Report) .
Western Digital Corporation Price and EPS Surprise
Western Digital Corporation Price and EPS Surprise | Western Digital Corporation Quote
What Our Model Predicts
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Western Digital has a Zacks Rank #3 and an Earnings ESP of -1.02%, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock That Warrants a Look
Here is a company, which, per our model, has the right combination of elements to post an earnings beat in the to-be-reported quarter:
Boot Barn Holdings, Inc. (BOOT - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank #1.The company is slated to report second-quarter fiscal 2019 earnings on Oct 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>