Western Digital (WDC) Issues FY18 Earnings Guidance
Western Digital (NASDAQ:WDC) updated its FY18 earnings guidance on Tuesday. The company provided EPS guidance of exceeding $13 for the period, compared to the Thomson Reuters consensus EPS estimate of $13.18. The company issued revenue guidance of High end of 4% to 8% growth, compared to the consensus revenue estimate of $20.39 billion.Western Digital also updated its Q2 guidance to ~$3.80 EPS.
A number of brokerages have recently commented on WDC. BidaskClub upgraded shares of Western Digital from a sell rating to a hold rating in a report on Wednesday. UBS lowered their price target on shares of Western Digital to $88.00 and set a neutral rating for the company in a report on Wednesday. Summit Redstone upgraded shares of Western Digital from a hold rating to a buy rating in a report on Wednesday. Cowen reiterated a buy rating on shares of Western Digital in a report on Wednesday. Finally, Citigroup reiterated a buy rating and set a $115.00 price target on shares of Western Digital in a report on Wednesday. Nine research analysts have rated the stock with a hold rating, twenty-four have issued a buy rating and three have assigned a strong buy rating to the stock. Western Digital presently has a consensus rating of Buy and a consensus target price of $113.10.
Shares of Western Digital (NASDAQ:WDC) opened at $83.63 on Thursday. Western Digital has a twelve month low of $66.74 and a twelve month high of $95.77. The stock has a market cap of $24,186.47, a P/E ratio of 8.21 and a beta of 1.10. The company has a debt-to-equity ratio of 1.07, a current ratio of 2.64 and a quick ratio of 2.13.
Western Digital (NASDAQ:WDC) last released its quarterly earnings data on Thursday, October 26th. The data storage provider reported $3.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.01 by $0.55. Western Digital had a net margin of 7.38% and a return on equity of 26.48%. The company had revenue of $5.18 billion during the quarter, compared to the consensus estimate of $5.13 billion. During the same period in the previous year, the firm earned $1.18 earnings per share. Western Digital’s revenue for the quarter was up 9.9% on a year-over-year basis. equities analysts anticipate that Western Digital will post 12.01 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 16th. Shareholders of record on Friday, December 29th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Thursday, December 28th. This represents a $2.00 annualized dividend and a yield of 2.39%. Western Digital’s dividend payout ratio is currently 41.75%.
Western Digital announced that its board has initiated a stock repurchase program on Thursday, November 9th that allows the company to buyback $2.10 billion in shares. This buyback authorization allows the data storage provider to purchase shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.
In other Western Digital news, insider Michael D. Cordano sold 9,404 shares of the business’s stock in a transaction that occurred on Monday, September 18th. The shares were sold at an average price of $88.71, for a total transaction of $834,228.84. Following the completion of the sale, the insider now directly owns 75,385 shares in the company, valued at $6,687,403.35. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Henry T. Denero sold 4,097 shares of the business’s stock in a transaction that occurred on Monday, October 30th. The stock was sold at an average price of $85.97, for a total transaction of $352,219.09. Following the sale, the director now owns 10,834 shares of the company’s stock, valued at $931,398.98. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 24,042 shares of company stock valued at $2,116,143. 0.31% of the stock is owned by insiders.
About Western Digital
Western Digital Corporation (Western Digital) is a developer, manufacturer and provider of data storage devices and solutions that address the needs of the information technology (IT) industry and the infrastructure that enables the proliferation of data in virtually every industry. The Company’s portfolio of offerings addresses three categories: Datacenter Devices and Solutions (capacity and performance enterprise hard disk drives (HDDs), enterprise solid state drives (SSDs), datacenter software and system solutions); Client Devices (mobile, desktop, gaming and digital video hard drives, client SSDs, embedded products and wafers), and Client Solutions (removable products, hard drive content solutions and flash content solutions).
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