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
Start investing today – just $7 per trade with Scottrade. Or find the broker that’s right for you.
VMware is a Motley Fool Rule Breakers selection. Apple is a Motley Fool Stock Advisor recommendation. Intel and Microsoft are Motley Fool Inside Value selections. Try any of our Foolish newsletters today, free for 30 days.
Fool contributor Anders Bylund owns shares in AMD, but he holds no other position in any of the companies discussed here. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.