The 10-second takeaway
For the quarter ended June 29 (Q4), Western Digital beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins expanded across the board.
Western Digital reported revenue of $4.75 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $4.25 billion on the same basis. GAAP reported sales were 98% higher than the prior-year quarter's $2.40 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $3.35. The 20 earnings estimates compiled by S&P Capital IQ predicted $2.48 per share. GAAP EPS of $2.87 for Q4 were 335% higher than the prior-year quarter's $0.66 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.0%, 1,150 basis points better than the prior-year quarter. Operating margin was 18.7%, 1,130 basis points better than the prior-year quarter. Net margin was 15.7%, 910 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.36 billion. On the bottom line, the average EPS estimate is $2.45.
Next year's average estimate for revenue is $16.55 billion. The average EPS estimate is $8.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,286 members out of 1,362 rating the stock outperform, and 76 members rating it underperform. Among 283 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 269 give Western Digital a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Digital is outperform, with an average price target of $44.39.
Looking to profit from the makers of computer hardware? You may be missing something obvious about where the money will be made in the tech industry of the future. Is Western Digital on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Western Digital to My Watchlist.