Western Digital (WDC) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Western Digital, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Western Digital is expected to report quarterly earnings of $1.75 per share, reflecting a year-over-year increase of +353.6%, with revenues projected at $4.28 billion, up 41.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 8.27% over the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate is lower than the consensus estimate, resulting in an Earnings ESP of -0.19%, suggesting a bearish outlook [10][11]. Historical Performance - Western Digital has beaten consensus EPS estimates in the last four quarters, with a recent surprise of +2.30% when it reported earnings of $1.78 per share against an expectation of $1.74 [12][13]. Investment Considerations - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 4 makes it challenging to predict a positive outcome for the upcoming earnings report [11][16].