The 10-second takeaway
For the quarter ended Sep. 28 (Q1), Western Digital beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
Western Digital notched revenue of $4.04 billion. The 15 analysts polled by S&P Capital IQ hoped for a top line of $3.95 billion on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $2.69 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 $2.36. The 19 earnings estimates compiled by S&P Capital IQ anticipated $2.31 per share. GAAP EPS of $2.06 for Q1 were 104% higher than the prior-year quarter's $1.01 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 29.6%, 950 basis points better than the prior-year quarter. Operating margin was 14.7%, 440 basis points better than the prior-year quarter. Net margin was 12.9%, 400 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.12 billion. On the bottom line, the average EPS estimate is $2.42.
Next year's average estimate for revenue is $15.71 billion. The average EPS estimate is $8.76.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Digital is outperform, with an average price target of $47.52.
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