Western Digital (WDC Quick QuoteWDC - Free Report) is scheduled to report first-quarter fiscal 2024 results on Oct 30.

For the to-be-reported quarter, management projects non-GAAP loss per share between $1.80 and $2.10. The Zacks Consensus Estimate is pegged at a loss of $1.88. WDC reported earnings per share of 20 cents in the prior-year quarter.

Western Digital expects non-GAAP revenues in the range of $2.55-$2.75 billion. The consensus estimate is currently pegged at $2.67 billion, indicating a decline of 28.6% from the prior-year quarter’s 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 111.4%, on average.

Western Digital Corporation Price and EPS Surprise

Western Digital Corporation price-eps-surprise | Western Digital Corporation Quote

Factors to Note

Western Digital expects HDD and Flash revenues to be “relatively stable” sequentially in the fiscal first quarter as it continues to adjust production to align with demand.

The Zacks Consensus Estimate for fiscal first-quarter HDD revenues is pegged at $1.278 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.

The Zacks Consensus Estimate for Flash revenues is pegged at $1.389 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 client SSD portfolio.

However, Western Digital’s fiscal first-quarter performance is likely to have been affected by soft consumer demand due to prevailing global macroeconomic uncertainties and rising inflation.

Weakness at cloud customers is likely to have affected nearline bit shipments. Lower flash pricing is likely to have acted as another headwind. Gross margins are likely to be negatively impacted due to underutilization charges.

What the Zacks Model Unveils

Our proven model predicts 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 +8.27% 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 a few stocks that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Itron (ITRI Quick QuoteITRI - Free Report) has an Earnings ESP of +23.18% and currently flaunts a Zacks Rank of 1. ITRI is set to announce quarterly figures on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ITRI’s to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $540.8 million, respectively. Shares of ITRI have gained 16.9% in the past year.

CDW Corporation (CDW Quick QuoteCDW - Free Report) has an Earnings ESP of +0.17% and presently carries a Zacks Rank #3. CDW is slated to release quarterly numbers on Nov 1.

The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.59 per share and $5.82 billion, respectively. Shares of CDW have increased 14.8% in the past year.

GoDaddy Inc (GDDY Quick QuoteGDDY - Free Report) has an Earnings ESP of +14.09% and currently sports a Zacks Rank #1. GDDY is scheduled to report quarterly earnings on Nov 2.

The Zacks Consensus Estimate for GDDY’s to-be-reported quarter’s earnings and revenues is pegged at 71 cents per share and $1.06 billion, respectively. Shares of GDDY have plunged 10.6% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.