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Western Digital (WDC) to Post Q2 Earnings: Key Factors to Note
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Western Digital (WDC - Free Report) is scheduled to report second-quarter fiscal 2024 results on Jan 25.
For the to-be-reported quarter, management projects non-GAAP loss per share to be between $1.05 and $1.35. The Zacks Consensus Estimate is pegged at a loss of $1.13. WDC reported loss per share of 42 cents in the prior-year quarter.
Western Digital expects non-GAAP revenues in the range of $2.85-$3.05 billion. The consensus estimate is currently pegged at $2.99 billion, indicating a decline of 3.7% from the prior-year quarter’s figure.
The company surpassed the Zacks Consensus Estimate in three of the last four quarters while missing it in the remaining quarter. It has a trailing four-quarter negative earnings surprise of 101.5%, on average.
Western Digital Corporation Price and EPS Surprise
Western Digital is likely to have gained from efforts directed at operating expense management as well as adjusting production with supply and demand trends in the fiscal second quarter. 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.
The company expects overall revenues for the fiscal second quarter to have benefited from higher nearline HDD shipments and improved flash pricing. Margins are likely to have been positively impacted by lower underutilization charges.
The Zacks Consensus Estimate for fiscal second-quarter HDD revenues is pegged at $1.291 billion. WDC expects higher nearline shipments and seasonal demand in the consumer end market to drive sequential revenue growth for the HDD segment. The company is witnessing healthy adoption of SMR-based nearline drives (especially ultra-SMR hard drives 26-terabyte drive exabyte shipments).
The Zacks Consensus Estimate for Flash revenues is pegged at $1.666 billion. Management expects modest improvements in bit and average selling prices, along with a decline in underutilization charges, to drive sequential growth for the Flash unit. Also, the company’s performance is likely to have benefited from strong demand for client SSD portfolio, SanDisk as well as WD_BLACK offerings.
However, soft consumer demand due to prevailing global macroeconomic uncertainties and inflation remain concerns.
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 +6.94% and presently carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this quarter.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $2.09 per share and $117.5 billion, respectively. Shares of AAPL have gained 36% in the past year.
Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +100.00% and presently carries a Zacks Rank #2. STX is slated to release quarterly numbers on Jan 24.
The Zacks Consensus Estimate for STX’s to-be-reported quarter’s revenues is pegged at $1.55 billion. The consensus estimate is pegged at a loss of 8 cents per share. Shares of STX have rallied 39.9% in the past year.
American Airlines Group Inc (AAL - Free Report) has an Earnings ESP of +43.10% and a Zacks Rank #2 at present. AAL will release results on Jan 25.
The Zacks Consensus Estimate for American Airline’s to-be-reported quarter’s earnings and revenues is pegged at 6 cents per share and $13 billion, respectively. Shares of AAL have lost 15% of their value 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 Q2 Earnings: Key Factors to Note
Western Digital (WDC - Free Report) is scheduled to report second-quarter fiscal 2024 results on Jan 25.
For the to-be-reported quarter, management projects non-GAAP loss per share to be between $1.05 and $1.35. The Zacks Consensus Estimate is pegged at a loss of $1.13. WDC reported loss per share of 42 cents in the prior-year quarter.
Western Digital expects non-GAAP revenues in the range of $2.85-$3.05 billion. The consensus estimate is currently pegged at $2.99 billion, indicating a decline of 3.7% from the prior-year quarter’s figure.
The company surpassed the Zacks Consensus Estimate in three of the last four quarters while missing it in the remaining quarter. It has a trailing four-quarter negative earnings surprise of 101.5%, on average.
Western Digital Corporation Price and EPS Surprise
Western Digital Corporation price-eps-surprise | Western Digital Corporation Quote
Factors to Note
Western Digital is likely to have gained from efforts directed at operating expense management as well as adjusting production with supply and demand trends in the fiscal second quarter. 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.
The company expects overall revenues for the fiscal second quarter to have benefited from higher nearline HDD shipments and improved flash pricing. Margins are likely to have been positively impacted by lower underutilization charges.
The Zacks Consensus Estimate for fiscal second-quarter HDD revenues is pegged at $1.291 billion. WDC expects higher nearline shipments and seasonal demand in the consumer end market to drive sequential revenue growth for the HDD segment. The company is witnessing healthy adoption of SMR-based nearline drives (especially ultra-SMR hard drives 26-terabyte drive exabyte shipments).
The Zacks Consensus Estimate for Flash revenues is pegged at $1.666 billion. Management expects modest improvements in bit and average selling prices, along with a decline in underutilization charges, to drive sequential growth for the Flash unit. Also, the company’s performance is likely to have benefited from strong demand for client SSD portfolio, SanDisk as well as WD_BLACK offerings.
However, soft consumer demand due to prevailing global macroeconomic uncertainties and inflation remain concerns.
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 +6.94% and presently carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this quarter.
Apple (AAPL - Free Report) has an Earnings ESP of +2.13% and carries a Zacks Rank #2 at present. Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $2.09 per share and $117.5 billion, respectively. Shares of AAPL have gained 36% in the past year.
Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +100.00% and presently carries a Zacks Rank #2. STX is slated to release quarterly numbers on Jan 24.
The Zacks Consensus Estimate for STX’s to-be-reported quarter’s revenues is pegged at $1.55 billion. The consensus estimate is pegged at a loss of 8 cents per share. Shares of STX have rallied 39.9% in the past year.
American Airlines Group Inc (AAL - Free Report) has an Earnings ESP of +43.10% and a Zacks Rank #2 at present. AAL will release results on Jan 25.
The Zacks Consensus Estimate for American Airline’s to-be-reported quarter’s earnings and revenues is pegged at 6 cents per share and $13 billion, respectively. Shares of AAL have lost 15% of their value in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.