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Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate is pegged at earnings of $1.72 per share, down 1.2% in the past 60 days. WDC reported a loss per share of $1.76 in the prior-year quarter. For the fiscal first quarter, Management projects non-GAAP earnings in the range of $1.55 to $1.85 per share.
Western Digital expects non-GAAP revenues in the range of $4-$4.2 billion. The consensus estimate is currently pegged at $4.11 billion, indicating an increase of 49.5% from the prior-year quarter’s figure.
The company surpassed the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of 64.9%, on average. In the past year, shares have gained 60.9% compared with the industry’s growth of 63.8%.
Image Source: Zacks Investment Research
Factors Shaping Upcoming Results for WDC
Growth opportunities in data storage owing to the AI data cycle have been emerging as key catalysts for players in the storage industry including Western Digital. WDC remains focused on aligning its product portfolio with these growth opportunities across various end markets to ease volatility.
Western Digital’s fiscal first-quarter performance is likely to have benefited from solid momentum in HDD driven by improving nearline demand and higher pricing from cloud customers. The strength in demand for SMR drives bodes well.
Also, the company expects an improvement in flash revenues sequentially owing to the adoption of new enterprise SSD products and seasonal strength in mobile. These factors are likely to have driven mid to high-teens bit growth on a sequential basis.
Western Digital Corporation Price and EPS Surprise
The Zacks Consensus Estimate for fiscal first-quarter HDD revenues is pegged at $2.03 billion. The Zacks Consensus Estimate for Flash revenues is pegged at $2.05 billion for the same.
Looking at end markets, the Cloud segment is likely to have gained from higher nearline and bit shipments and increased nearline per unit pricing. Momentum in demand for SanDisk premium brand is likely to have cushioned revenues from the Consumer segment. The Client segment is likely to have gained from increased flash ASPs.
However, prevailing global macroeconomic uncertainties, intensifying competition in the storage space and increasing expenses remain concerning. For the fiscal first quarter, WDC expects non-GAAP operating expenses to be between $695 million and $715 million. This includes dis-synergy costs (stemming from the execution of the separation of the company into two independent units) in the range of $15 million to $25 million. Interest and other expenses are projected to be $110 million.
What the Zacks Model Unveils for WDC
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. This is not the case here.
Western Digital presently has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). 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 season.
SEIC is scheduled to report quarterly earnings on Oct. 23. The Zacks Consensus Estimate for SEIC’s to-be-reported quarter’s earnings and revenues is pegged at $1.07 per share and $533.2 million, respectively. Shares of SEIC have gained 32.2% in the past year.
Ameriprise Financial, Inc. (AMP - Free Report) presently has an Earnings ESP of +0.44% and a Zacks Rank #2. AMP is scheduled to report quarterly numbers on Oct. 23. The Zacks Consensus Estimate for AMP’s to-be-reported quarter’s earnings and revenues is pegged at $8.91 per share and $4.31 billion, respectively. Shares of AMP have risen 67.9% in the past year.
American Airlines Group Inc. (AAL - Free Report) has an Earnings ESP of +32.87% and a Zacks Rank #2 at present. AAL is scheduled to report quarterly figures on Oct. 24. The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $13.49 billion, respectively. Shares of AAL have increased 14.9% in the past year
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Western Digital Gearing Up for Q1 Earnings: Here's What to Expect
Western Digital Corporation (WDC - Free Report) will report fiscal first-quarter 2025 results on Oct. 24.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate is pegged at earnings of $1.72 per share, down 1.2% in the past 60 days. WDC reported a loss per share of $1.76 in the prior-year quarter. For the fiscal first quarter, Management projects non-GAAP earnings in the range of $1.55 to $1.85 per share.
Western Digital expects non-GAAP revenues in the range of $4-$4.2 billion. The consensus estimate is currently pegged at $4.11 billion, indicating an increase of 49.5% from the prior-year quarter’s figure.
The company surpassed the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of 64.9%, on average. In the past year, shares have gained 60.9% compared with the industry’s growth of 63.8%.
Image Source: Zacks Investment Research
Factors Shaping Upcoming Results for WDC
Growth opportunities in data storage owing to the AI data cycle have been emerging as key catalysts for players in the storage industry including Western Digital. WDC remains focused on aligning its product portfolio with these growth opportunities across various end markets to ease volatility.
Western Digital’s fiscal first-quarter performance is likely to have benefited from solid momentum in HDD driven by improving nearline demand and higher pricing from cloud customers. The strength in demand for SMR drives bodes well.
Also, the company expects an improvement in flash revenues sequentially owing to the adoption of new enterprise SSD products and seasonal strength in mobile. These factors are likely to have driven mid to high-teens bit growth on a sequential basis.
Western Digital Corporation Price and EPS Surprise
Western Digital Corporation price-eps-surprise | Western Digital Corporation Quote
The Zacks Consensus Estimate for fiscal first-quarter HDD revenues is pegged at $2.03 billion. The Zacks Consensus Estimate for Flash revenues is pegged at $2.05 billion for the same.
Looking at end markets, the Cloud segment is likely to have gained from higher nearline and bit shipments and increased nearline per unit pricing. Momentum in demand for SanDisk premium brand is likely to have cushioned revenues from the Consumer segment. The Client segment is likely to have gained from increased flash ASPs.
However, prevailing global macroeconomic uncertainties, intensifying competition in the storage space and increasing expenses remain concerning. For the fiscal first quarter, WDC expects non-GAAP operating expenses to be between $695 million and $715 million. This includes dis-synergy costs (stemming from the execution of the separation of the company into two independent units) in the range of $15 million to $25 million. Interest and other expenses are projected to be $110 million.
What the Zacks Model Unveils for WDC
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. This is not the case here.
Western Digital presently has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). 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 season.
SEI Investments Company (SEIC - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
SEIC is scheduled to report quarterly earnings on Oct. 23. The Zacks Consensus Estimate for SEIC’s to-be-reported quarter’s earnings and revenues is pegged at $1.07 per share and $533.2 million, respectively. Shares of SEIC have gained 32.2% in the past year.
Ameriprise Financial, Inc. (AMP - Free Report) presently has an Earnings ESP of +0.44% and a Zacks Rank #2. AMP is scheduled to report quarterly numbers on Oct. 23. The Zacks Consensus Estimate for AMP’s to-be-reported quarter’s earnings and revenues is pegged at $8.91 per share and $4.31 billion, respectively. Shares of AMP have risen 67.9% in the past year.
American Airlines Group Inc. (AAL - Free Report) has an Earnings ESP of +32.87% and a Zacks Rank #2 at present. AAL is scheduled to report quarterly figures on Oct. 24. The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 13 cents per share and $13.49 billion, respectively. Shares of AAL have increased 14.9% in the past year