Western Digital Set to Report Earnings Amid Stock Fluctuations
Company Overview and Upcoming Earnings
Western Digital Corporation (WDC), with a market cap of $22.1 billion, excels in the design, production, and sale of data storage devices. Based in San Jose, California, the company offers a broad range of hard disk drives and solid-state drives, commonly used in desktop PCs, gaming consoles, and digital video recorders. Investors are looking forward to WDC’s fiscal Q2 earnings announcement, which is due after the market’s close on Thursday, Jan. 23.
Strong Earnings Expectations
Analysts predict that WDC will report earnings of $1.67 per share, a remarkable increase of 283.5% compared to a loss of $0.91 per share during the same quarter last year. Notably, WDC has consistently met or exceeded Wall Street’s earnings expectations over the last four quarters.
Looking Ahead to Fiscal 2025
For the ongoing fiscal year 2025, experts anticipate that WDC will achieve earnings per share (EPS) of $6.26, representing a substantial 669.1% increase from the loss of $1.10 reported in fiscal 2024.
Stock Performance and Market Trends
In the past year, WDC shares have saw an increase of 27.3%, slightly outperforming the S&P 500 Index’s 26.3% rise and the Technology Select Sector SPDR Fund’s (XLK) 27.1% gain in the same timeframe.
The uptick in demand for memory in AI applications, combined with WDC’s successful strategic adjustments, has boosted its position in cloud and client end markets, positively influencing its stock price.
Recent Market Reactions
Despite these gains, WDC faced a setback on Dec. 19 when its stock dipped more than 6% after Benchmark Company LLC downgraded it from “Buy” to “Hold.” Earlier, on Dec. 12, shares fell by 5.6% following management’s acknowledgment of ongoing pricing issues and high inventory levels that are currently impacting demand for PCs and smartphones. While the market perceived this news as concerning, it does not appear to represent a fundamental shift in the company’s outlook.
Analyst Ratings and Price Projections
Despite recent fluctuations, analysts remain bullish on Western Digital’s stock, granting it a “Strong Buy” consensus rating overall. Out of 21 analysts, 15 recommend a “Strong Buy,” while six suggest a “Hold.” This is a slight decrease in bullishness compared to the previous month, where 16 analysts endorsed a “Strong Buy” position. The average price target for WDC stands at $89.42, indicating a possible upside of 39.6% from its current price.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For additional details, please view the Barchart Disclosure Policy here.
The views expressed in this article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
