Wall Street brokerages forecast that Western Digital Corp (NASDAQ:WDC) will post $5.14 billion in sales for the current fiscal quarter, Zacks reports. Six analysts have issued estimates for Western Digital’s earnings. The lowest sales estimate is $5.11 billion and the highest is $5.15 billion. Western Digital posted sales of $5.18 billion in the same quarter last year, which would suggest a negative year-over-year growth rate of 0.8%. The firm is scheduled to report its next quarterly earnings results on Thursday, October 25th.
According to Zacks, analysts expect that Western Digital will report full-year sales of $20.59 billion for the current year, with estimates ranging from $19.92 billion to $22.04 billion. For the next financial year, analysts forecast that the firm will post sales of $20.98 billion per share, with estimates ranging from $20.35 billion to $21.93 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of research analysts that cover Western Digital.
Western Digital (NASDAQ:WDC) last issued its quarterly earnings data on Thursday, July 26th. The data storage provider reported $3.61 EPS for the quarter, topping analysts’ consensus estimates of $3.20 by $0.41. Western Digital had a net margin of 3.27% and a return on equity of 36.35%. The firm had revenue of $5.12 billion for the quarter, compared to analyst estimates of $5.07 billion. During the same quarter in the previous year, the business posted $2.93 EPS. The firm’s revenue was up 5.7% compared to the same quarter last year.
WDC has been the topic of a number of recent analyst reports. Morgan Stanley boosted their price objective on shares of Western Digital from $92.00 to $97.00 and gave the stock an “equal weight” rating in a report on Friday, April 27th. Zacks Investment Research lowered shares of Western Digital from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 17th. Standpoint Research upgraded shares of Western Digital from a “hold” rating to a “buy” rating in a report on Tuesday, July 10th. ValuEngine lowered shares of Western Digital from a “hold” rating to a “sell” rating in a report on Wednesday, May 2nd. Finally, JPMorgan Chase & Co. cut their price objective on shares of Western Digital from $120.00 to $117.00 and set an “overweight” rating on the stock in a report on Friday, July 27th. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating and nineteen have issued a buy rating to the company. Western Digital has an average rating of “Buy” and an average price target of $103.36.
In related news, CFO Mark P. Long sold 2,233 shares of the stock in a transaction dated Friday, August 3rd. The shares were sold at an average price of $68.74, for a total transaction of $153,496.42. Following the sale, the chief financial officer now owns 191,154 shares in the company, valued at $13,139,925.96. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Srinivasan Sivaram sold 63,879 shares of the stock in a transaction dated Tuesday, May 29th. The stock was sold at an average price of $86.36, for a total transaction of $5,516,590.44. Following the sale, the executive vice president now owns 110,910 shares in the company, valued at approximately $9,578,187.60. The disclosure for this sale can be found here. In the last quarter, insiders have sold 108,164 shares of company stock worth $8,809,806. 0.31% of the stock is owned by company insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in WDC. Amerigo Asset Management acquired a new stake in Western Digital during the first quarter worth about $238,104,000. BlackRock Inc. grew its position in Western Digital by 9.2% in the 2nd quarter. BlackRock Inc. now owns 21,040,844 shares of the data storage provider’s stock worth $1,628,774,000 after purchasing an additional 1,772,435 shares during the last quarter. Morgan Stanley grew its position in Western Digital by 60.5% in the 2nd quarter. Morgan Stanley now owns 2,060,384 shares of the data storage provider’s stock worth $159,493,000 after purchasing an additional 776,556 shares during the last quarter. Sumitomo Mitsui Asset Management Company LTD grew its position in Western Digital by 3,351.1% in the 2nd quarter. Sumitomo Mitsui Asset Management Company LTD now owns 710,787 shares of the data storage provider’s stock worth $55,022,000 after purchasing an additional 690,191 shares during the last quarter. Finally, Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp grew its position in Western Digital by 366.4% in the 2nd quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 824,100 shares of the data storage provider’s stock worth $63,794,000 after purchasing an additional 647,400 shares during the last quarter. Hedge funds and other institutional investors own 84.36% of the company’s stock.
WDC stock traded down $0.61 during trading on Monday, reaching $64.02. The stock had a trading volume of 3,498,600 shares, compared to its average volume of 4,036,914. Western Digital has a 1-year low of $61.54 and a 1-year high of $106.96. The company has a debt-to-equity ratio of 0.95, a current ratio of 2.39 and a quick ratio of 1.73. The firm has a market capitalization of $19.39 billion, a P/E ratio of 4.75, a P/E/G ratio of 0.32 and a beta of 0.96.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 15th. Investors of record on Friday, September 28th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Thursday, September 27th. This represents a $2.00 annualized dividend and a yield of 3.12%. Western Digital’s dividend payout ratio (DPR) is 14.80%.
Western Digital announced that its board has authorized a stock repurchase program on Thursday, July 26th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the data storage provider to buy up to 22.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.
Western Digital Company Profile
Western Digital Corporation, together with its subsidiaries, develops, manufactures, and sells data storage devices and solutions worldwide. It offers performance hard disk drives (HDDs) that are used in enterprise servers, data analysis, and other enterprise applications; capacity HDDs and drive configurations for use in data storage systems and tiered storage models; and enterprise solid state drives (SSDs), including NAND-flash SSDs and software solutions that are designed to enhance the performance in various enterprise workload environments.
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