Western Digital (WDC) hits record high after blowout earning outlook

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Western digital Company (WDC), the largest Data storage company smashed an implausible record on Friday in response to 3rd quarter fiscal revenue that surpasses both highest and minimum lines, as its expectation for the 4th quarter.
A number of analysts increased their target on the shares of Western Digital Company (WDC), including the renowned Needham analyst Richard Kugele who shocked many by raising his shares’ target from 100 to 138, with a cogent buy rating. Target of Mizuho analyst Rakesh was raised from 92 to 105 and maintained a buy rating, while RBC capital Market analyst Amit Daryanani raised his from 96 to 115, with a surpassing rate. In the stock market today, WDC stock rose from 3.9% to 89.07, while the intraday high was 91 on Friday. IBD has featured the WDC in its Tech Leaders screen.
Kugele wrote in a research note on Friday that an impressive change happened at Western Digital marketfor fiscal Q3. However, this is not a big thing compared to the 2017’s guidance, andfor fiscal Q4. Rakesh also wrote in a research note on Friday that a solid March quarter was reported by Western Digital abve consensus, because il pulls ahead of its peer with an execution solid.
Western Digital reported a blowout quarter with plenty of positive.” Daryanani was writing in a research note on Friday.
After the closure of the stock market on Thursday, WDC reported having adjusted earnings of $2.39 per share with above 77% annually and a 64% rise in its income to $4.6 billion, with sales and gains surpassing the estimations for the phase which ended on 31st March. This includes revenue generated from the $16 billion procurement of SanDisk in May last year.
Western Digital Company is the major supplier of disk drives leading Seagate Technology (STX). WDC has become a great competitor in the chip flash storage business after the acquisition of SanDisk. It was reported that WDC is considering acquiring a spot in Toshiba’s flash memory business. WDC and Toshiba are jointly operating a factory which is located in Japan.
Western Digital and Seagate have benefited from stability in the disk drive market, with their latest benefits from supplies of NAND, a new age memory chips.
However, Seagate reported having missed revenue estimations which tied down the stock in their quarterly results on Wednesday morning. This week, Seagate lost above 12% having dipped 0.4% on Friday.
Western Digital predicts revenue of about $4.8billion versus estimations of $4.6 billion for the fiscal 4th quarter, while it predicts adjusted earnings between ranges of $2.55 to $2.65 versus estimations of $2.14.