Open letter to all the skeptics: This tech rally is real.
I can forgive some apprehension after Intel's
And now, with last night's fourth-quarter report from Western Digital
Western Digital managed to pull an Intel and surprise itself. Forty million hard drives shipped translated into $1.9 billion in revenue, and net income of $0.86 per share. That's a unit volume record for the company, and both sales and profits have nearly returned to where they were a year ago. The stock’s trading down today on concerns it’s risen too fast, up 200% since November. But don't be fooled -- this was an amazing quarter.
Last quarter, management set its sights on fourth-quarter revenue around the $1.5 billion mark, a 15.4% gross margin, and earnings no higher than $0.24 per share. Have a look at the actual margins:
Metric |
Q4 2009 |
Q3 2009 |
Q4 2008 |
---|---|---|---|
Gross |
19.2% |
15.9% |
21.3% |
Operating |
10.8% |
5.0% |
12.1% |
Net |
10.2% |
3.1% |
10.7% |
Across the tracks, chief rival Seagate Technology
Yes, there are exceptions to the recovery. Microsoft
Convinced of this market recovery yet, Doubting Thomases? I really think you should be. Feel free to tell me off in the comments box below, though.
Further Foolishness:
- A Good Quarter for Growth
- 5 Stocks From the Leading Sector of the Next Bull Market
- Stocks the Rich Executives Are Buying
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