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Western Digital Corporation (WDC - Free Report) has finally moved beyond the Thailand floods. The company crushed the Zacks Consensus in the fiscal third quarter by 59%. This Zacks #1 Rank (Strong Buy) continues to be dirt cheap with a forward P/E of only 5.

Western Digital manufactures hard drives for electronic devices, including PCs and netbooks.

Western Digital Beat Big in the Fiscal Q3

On Apr 26, Western Digital reported its fiscal third quarter results and easily beat the Zacks Consensus by 94 cents. Earnings per share were $2.52 compared to the consensus of $1.58.

Revenue rose 30% to $3 billion from $2.3 billion in the year ago quarter. It shipped 44.2 million hard-drive units compared to 49.8 million hard drives a year ago.

Western Digital continued to be a cash generating machine, pumping $1.2 billion in cash from operations during the quarter. It finished the quarter with $3.4 billion in cash and cash equivalents.

What About the Floods?

The company is finally putting the Thailand floods behind it.

"I am also pleased to announce today that the recovery activities related to both WD operations and those of our supply chain partners impacted by the Thailand floods have reached a point where we now have the capability to adequately meet anticipated customer demand in the current quarter and beyond," said John Coyne, CEO.

Zacks Consensus Estimates Soar

The analysts liked what they heard as estimates for both fiscal 2012 and fiscal 2013 surged since the earnings announcement.

12 out of 16 estimates have moved higher for fiscal 2012 pushing the Zacks Consensus up to $7.62 from $6.71 per share.

That is massive earnings growth of 143% as the company only made $3.13 in fiscal 2011.

The estimate revisions are more mixed for fiscal 2013, however. 6 have moved higher and 5 have moved lower in the last week.

Still, the Zacks Consensus has risen to $9.13 form $9.03 in the last 7 days. That is further earnings growth of 19.9%.

Dirt Cheap Stock

Western Digital continues to be one of the cheapest technology stocks around even though shares are near 2-year highs.

In addition to a P/E of just 5, the company also has a price-to-book ratio of 1.2. That is well below the P/B ratio of 3.0 I use as a cut off for value stocks.

Western Digital also has a price-to-sales ratio of 0.9. A P/S under 1.0 usually indicates value.

The company has other solid fundamentals as well, including a 1-year return on equity (ROE) of 19.5% which is well above the average of the S&P 500 which is 13.4%.

For value investors wanting to buy technology, Western Digital certainly fits the bill.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at traceyryniec.

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