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 Store for Western Digital (WDC) in Q1 Earnings?
Read MoreHide Full Article
Western Digital (WDC - Free Report) ) is scheduled to report first-quarter fiscal 2023 results on Oct 27.
For the to-be-reported quarter, the company projects non-GAAP earnings in the range of 35-65 cents. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share, suggesting a decrease of 80.3% from the year-ago quarter’s levels.
Western Digital expects non-GAAP revenues between $3.6 billion and $3.8 billion. The Zacks Consensus Estimate for revenues is currently pegged at $3.63 billion, indicating a decline of 28.1% from the prior-year quarter’s reported figure.
Western Digital Corporation Price and EPS Surprise
The company surpassed the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 5.5%, on average. In the past year, shares of WDC have lost 38.6% of their value against the industry’s decline of 29.4%.
Image Source: Zacks Investment Research
Factors to Note Ahead of Q1 Release
Western Digital’s fiscal first-quarter performance is likely to have been driven by the company’s robust product portfolio, especially new product ramps in HDD and flash, amid investments in digital transformation by business enterprises. Strong cloud data center demand is expected to have acted as a tailwind.
The company’s energy-assisted drives (18 and 20 terabytes) and the company’s second-generation NVMe enterprise SSDs have been witnessing strong demand from cloud providers and big enterprise OEMs. The company’s innovations in OptiNAND and SMR to drive its capacity enterprise business are expected to have benefited its performance. The company’s WD Black product line is expected to have witnessed incremental adoption as gamers move toward more customized gaming solutions.
Coming to the product group, the Zacks Consensus Estimate for Flash revenues is pegged at $1.631 billion. Amid the macroeconomic weakness and customers right-sizing their inventory, Flash revenues are likely to have gained from higher demand for second-generation NVMe enterprise SSDs and the ramp-up of new 5G phones incorporating the company’s latest BiCS5 flash solutions.
The Zacks Consensus Estimate for fiscal first-quarter hard disk drive (HDD) revenues is pegged at $1.961 billion. HDD revenues are expected to have been negatively impacted by declines in consumer and client segments.
Weakness in macroeconomic conditions, persistent supply chain troubles and component shortages witnessed globally are likely to have affected the company’s performance in the quarter to be reported. Also, a broad-based decline in retail products across HDD and Flash business is expected to have been a headwind.
Moreover, declining trends witnessed in PC shipments in the third quarter of the calendar year 2022 are likely to have negatively impacted HDD sales in the company’s performance in the quarter under review.
Higher costs associated with ramping up next-generation energy-assisted hard drives and increasing supply chain-related expenses amid stiff competition in the disk drive market might have dented fiscal first-quarter profits.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Western Digital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Western Digital has an Earnings ESP of 0.00% and presently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
The Zacks Consensus Estimate for Stellar Bancorp’s to-be-reported quarter’s earnings and revenues is pegged at 88 cents per share and $56.4 million, respectively. Shares of STEL gained 5.2% in the past year
NETGEAR (NTGR - Free Report) has an Earnings ESP of +8.00% and presently carries a Zacks Rank #3. NETGEAR is slated to release quarterly numbers on Oct 26.
The Zacks Consensus Estimate for NTGR’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $242.8 billion, respectively. Shares of NTGR have lost 33.9% in the past year.
Apple (AAPL - Free Report) has an Earnings ESP of +0.89% and currently sports a Zacks Rank #3. Apple is scheduled to report earnings on Oct 27.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $88.5 billion, respectively. Apple surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 5.7%. Shares of AAPL have gained 0.2% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What's in Store for Western Digital (WDC) in Q1 Earnings?
Western Digital (WDC - Free Report) ) is scheduled to report first-quarter fiscal 2023 results on Oct 27.
For the to-be-reported quarter, the company projects non-GAAP earnings in the range of 35-65 cents. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share, suggesting a decrease of 80.3% from the year-ago quarter’s levels.
Western Digital expects non-GAAP revenues between $3.6 billion and $3.8 billion. The Zacks Consensus Estimate for revenues is currently pegged at $3.63 billion, indicating a decline of 28.1% from the prior-year quarter’s reported figure.
Western Digital Corporation Price and EPS Surprise
Western Digital Corporation price-eps-surprise | Western Digital Corporation Quote
The company surpassed the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 5.5%, on average. In the past year, shares of WDC have lost 38.6% of their value against the industry’s decline of 29.4%.
Image Source: Zacks Investment Research
Factors to Note Ahead of Q1 Release
Western Digital’s fiscal first-quarter performance is likely to have been driven by the company’s robust product portfolio, especially new product ramps in HDD and flash, amid investments in digital transformation by business enterprises. Strong cloud data center demand is expected to have acted as a tailwind.
The company’s energy-assisted drives (18 and 20 terabytes) and the company’s second-generation NVMe enterprise SSDs have been witnessing strong demand from cloud providers and big enterprise OEMs. The company’s innovations in OptiNAND and SMR to drive its capacity enterprise business are expected to have benefited its performance. The company’s WD Black product line is expected to have witnessed incremental adoption as gamers move toward more customized gaming solutions.
Coming to the product group, the Zacks Consensus Estimate for Flash revenues is pegged at $1.631 billion. Amid the macroeconomic weakness and customers right-sizing their inventory, Flash revenues are likely to have gained from higher demand for second-generation NVMe enterprise SSDs and the ramp-up of new 5G phones incorporating the company’s latest BiCS5 flash solutions.
The Zacks Consensus Estimate for fiscal first-quarter hard disk drive (HDD) revenues is pegged at $1.961 billion. HDD revenues are expected to have been negatively impacted by declines in consumer and client segments.
Weakness in macroeconomic conditions, persistent supply chain troubles and component shortages witnessed globally are likely to have affected the company’s performance in the quarter to be reported. Also, a broad-based decline in retail products across HDD and Flash business is expected to have been a headwind.
Moreover, declining trends witnessed in PC shipments in the third quarter of the calendar year 2022 are likely to have negatively impacted HDD sales in the company’s performance in the quarter under review.
Higher costs associated with ramping up next-generation energy-assisted hard drives and increasing supply chain-related expenses amid stiff competition in the disk drive market might have dented fiscal first-quarter profits.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Western Digital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Western Digital has an Earnings ESP of 0.00% and presently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Stellar Bancorp (STEL - Free Report) has an Earnings ESP of +14.34% and currently has a Zacks Rank #2. Stellar Bancorp is scheduled to report earnings on Oct 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Stellar Bancorp’s to-be-reported quarter’s earnings and revenues is pegged at 88 cents per share and $56.4 million, respectively. Shares of STEL gained 5.2% in the past year
NETGEAR (NTGR - Free Report) has an Earnings ESP of +8.00% and presently carries a Zacks Rank #3. NETGEAR is slated to release quarterly numbers on Oct 26.
The Zacks Consensus Estimate for NTGR’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $242.8 billion, respectively. Shares of NTGR have lost 33.9% in the past year.
Apple (AAPL - Free Report) has an Earnings ESP of +0.89% and currently sports a Zacks Rank #3. Apple is scheduled to report earnings on Oct 27.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $88.5 billion, respectively. Apple surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 5.7%. Shares of AAPL have gained 0.2% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.