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Western Digital (WDC) to Post Q4 Earnings: Key Factors to Note
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Western Digital (WDC - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Jul 31.
For the to-be-reported quarter, management projects a non-GAAP loss per share between $1.90 and $1.20. The Zacks Consensus Estimate is pegged at a loss of $2.00 per share against the earnings per share of $1.78 reported in the prior-year quarter.
Western Digital expects non-GAAP revenues in the range of $2.4-$2.6 billion. The consensus estimate is currently pegged at $2.51 billion, indicating a decline of 44.5% from the prior-year quarter’s reported figure.
The company surpassed the Zacks Consensus Estimate in two of the last four quarters while missing twice. It has a trailing four-quarter negative earnings surprise of 111.5%, on average.
Western Digital Corporation Price and EPS Surprise
Western Digital’s fiscal fourth-quarter performance is likely to have been affected by weakening consumer demand due to prevailing global macroeconomic uncertainties and rising inflation.
The company expects HDD revenues to decrease sequentially owing to ongoing inventory digestion at cloud customers. The Zacks Consensus Estimate for fiscal fourth-quarter HDD revenues is pegged at $1.397 billion. However, the adoption of SMR and CMR hard drives (especially 22-terabyte drive exabyte shipments) remains healthy and is likely to have cushioned the segment’s performance.
Flash revenues are expected to decline sequentially owing to the average selling price decline. The Zacks Consensus Estimate for Flash revenues is pegged at $1.130 billion.
To battle macroeconomic uncertainties, WDC is focused on reducing capital investments and operating expenses to better align cash flow and cost structure with market conditions. Also, the company’s performance is likely to have benefited from the strong demand for WD_BLACK SSD.
However, the company notices better demand from a few Chinese clients and observes indications of stabilization and an increase in content per unit in flash. PC OEMs are expected to have recovered from inventory digestion.
Recent Developments
In June, the company announced a new set of sustainability targets to tackle the climate change crisis. The company’s new goals focus on powering its entire operations using solely renewable energy sources by 2030. It targets to achieve net zero Scope 1 and 2 emissions across its operations by 2032.
What the Zacks Model Unveils
Our proven model does not 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. However, this is not the case here, as you see below.
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 WWD to-be-reported quarter’s earnings and revenues is pegged at 97 cents per share and $702.2 million, respectively. Shares of WWD have rallied 20.2% in the past year.
Paycom Software (PAYC - Free Report) has an Earnings ESP of +1.88% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for PAYC’s to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $398.2 million, respectively. Shares of PAYC have rallied 10.5% in the past year.
Rockwell Automation (ROK - Free Report) has an Earnings ESP of +0.31% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for ROK’s to-be-reported quarter’s earnings and revenues is pegged at $3.18 per share and $2.3 billion, respectively. Shares of ROK have rallied 40.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Western Digital (WDC) to Post Q4 Earnings: Key Factors to Note
Western Digital (WDC - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Jul 31.
For the to-be-reported quarter, management projects a non-GAAP loss per share between $1.90 and $1.20. The Zacks Consensus Estimate is pegged at a loss of $2.00 per share against the earnings per share of $1.78 reported in the prior-year quarter.
Western Digital expects non-GAAP revenues in the range of $2.4-$2.6 billion. The consensus estimate is currently pegged at $2.51 billion, indicating a decline of 44.5% from the prior-year quarter’s reported figure.
The company surpassed the Zacks Consensus Estimate in two of the last four quarters while missing twice. It has a trailing four-quarter negative earnings surprise of 111.5%, on average.
Western Digital Corporation Price and EPS Surprise
Western Digital Corporation price-eps-surprise | Western Digital Corporation Quote
Factors to Note Ahead of Q4 Release
Western Digital’s fiscal fourth-quarter performance is likely to have been affected by weakening consumer demand due to prevailing global macroeconomic uncertainties and rising inflation.
The company expects HDD revenues to decrease sequentially owing to ongoing inventory digestion at cloud customers. The Zacks Consensus Estimate for fiscal fourth-quarter HDD revenues is pegged at $1.397 billion. However, the adoption of SMR and CMR hard drives (especially 22-terabyte drive exabyte shipments) remains healthy and is likely to have cushioned the segment’s performance.
Flash revenues are expected to decline sequentially owing to the average selling price decline. The Zacks Consensus Estimate for Flash revenues is pegged at $1.130 billion.
To battle macroeconomic uncertainties, WDC is focused on reducing capital investments and operating expenses to better align cash flow and cost structure with market conditions. Also, the company’s performance is likely to have benefited from the strong demand for WD_BLACK SSD.
However, the company notices better demand from a few Chinese clients and observes indications of stabilization and an increase in content per unit in flash. PC OEMs are expected to have recovered from inventory digestion.
Recent Developments
In June, the company announced a new set of sustainability targets to tackle the climate change crisis. The company’s new goals focus on powering its entire operations using solely renewable energy sources by 2030. It targets to achieve net zero Scope 1 and 2 emissions across its operations by 2032.
What the Zacks Model Unveils
Our proven model does not 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. However, this is not the case here, as you see below.
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.
Woodward (WWD - Free Report) has an Earnings ESP of +1.55% and currently sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 31. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WWD to-be-reported quarter’s earnings and revenues is pegged at 97 cents per share and $702.2 million, respectively. Shares of WWD have rallied 20.2% in the past year.
Paycom Software (PAYC - Free Report) has an Earnings ESP of +1.88% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for PAYC’s to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $398.2 million, respectively. Shares of PAYC have rallied 10.5% in the past year.
Rockwell Automation (ROK - Free Report) has an Earnings ESP of +0.31% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for ROK’s to-be-reported quarter’s earnings and revenues is pegged at $3.18 per share and $2.3 billion, respectively. Shares of ROK have rallied 40.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.