Western Digital(WDC) ZACKS·2024-05-30 14:06Core Viewpoint - Western Digital (WDC) has shown strong stock performance recently, with a +9.8% return over the past month, outperforming the S&P 500's +3.2% and the Computer Storage Devices industry’s +4.8% [1] Earnings Estimate Revisions - The current quarter's earnings estimate for Western Digital is $1.02 per share, reflecting a +151.5% change year-over-year [3] - The consensus earnings estimate for the current fiscal year is -$0.84, indicating a +76.6% change from the previous year [3] - For the next fiscal year, the consensus earnings estimate is $8.33, showing a significant increase of +1,092.4% compared to the prior year [3] Revenue Growth Potential - The consensus sales estimate for the current quarter is $3.72 billion, representing a year-over-year change of +39.4% [5] - For the current fiscal year, the sales estimate is $12.81 billion, indicating a +4% change, while the next fiscal year's estimate is $17.91 billion, reflecting a +39.8% change [5] Last Reported Results and Surprise History - In the last reported quarter, Western Digital achieved revenues of $3.46 billion, a +23.3% year-over-year increase [6] - The EPS for the same period was $0.63, compared to -$1.37 a year ago, with a revenue surprise of +3.87% and an EPS surprise of +200% [6] - The company has consistently beaten consensus EPS and revenue estimates over the last four quarters [6] Valuation - Western Digital is currently graded D in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [9] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [7] Conclusion - The Zacks Rank 2 suggests that Western Digital may outperform the broader market in the near term, supported by strong earnings and revenue growth projections [10]