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.
Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.