What: Shares of computer storage specialist Western Digital Corporation (NASDAQ:WDC) popped by as much as 12% today after the company reported upbeat earnings for the fiscal fourth quarter.
So what: Revenue came in at $3.2 billion, which translated into $220 million in net income, or $0.94 per share. On an adjusted basis, net income was $356 million, or $1.51 per share. Western Digital fell slightly short of revenue estimates, but put up a healthy beat on the bottom line. The results were particularly impressive considering the backdrop of a weak PC market.
Now what: CEO Steve Milligan said he was "satisfied" with the company's execution and performance given the state of the PC market, which IDC estimates declined by 12% last quarter in terms of global unit volumes. Western Digital was able to generate $488 million in operating cash flow during the quarter, of which it dedicated nearly $200 million to share repurchases. The company ended the quarter with $5 billion in cash on the books. Shares fell by 19% in June and were trading around 52-week lows before the earnings report, and it wasn't tough to beat seemingly low expectations.