Company Overview - Western Digital (WDC) closed at $80.34, down 2.07% from the previous trading session, underperforming the S&P 500's loss of 0.64% [1] - Over the past month, WDC shares gained 4.26%, outperforming the Computer and Technology sector's gain of 2.91% and the S&P 500's gain of 1.91% [1] Upcoming Earnings - Analysts expect Western Digital to report earnings of $1.57 per share, reflecting a year-over-year decline of 11.8% [2] - The consensus estimate projects revenue of $2.7 billion, indicating a 34.03% decrease from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $6.5 per share and revenue of $10.92 billion, representing changes of +31.85% and -17.76% respectively from the previous year [3] - Recent changes in analyst estimates may indicate shifting business trends, with positive revisions suggesting analyst optimism [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have contributed an average annual return of +25% since 1988 [5] - Western Digital currently holds a Zacks Rank of 1 (Strong Buy), with a 9.55% rise in the Zacks Consensus EPS estimate over the past month [5] Valuation Metrics - Western Digital is trading at a Forward P/E ratio of 12.62, which is lower than its industry's Forward P/E of 15.14 [6] - The company has a PEG ratio of 0.91, compared to the average PEG ratio of 2.32 for the Computer-Storage Devices industry [6] Industry Context - The Computer-Storage Devices industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 39, placing it in the top 16% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Western Digital (WDC) is positioned as a strong investment opportunity due to a significant revision in earnings estimates, indicating an improving earnings outlook [1][9]. Earnings Estimate Revisions - The trend of rising estimate revisions reflects growing analyst optimism regarding Western Digital's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, Western Digital is projected to earn $1.57 per share, representing a year-over-year decline of 11.8%. However, the Zacks Consensus Estimate has increased by 13.02% over the last 30 days, with three estimates raised and no negative revisions [6]. - For the full year, the earnings estimate stands at $6.50 per share, showing a year-over-year increase of 31.9%. Over the past month, five estimates have been revised upward, with no negative revisions [7]. Zacks Rank and Performance - Western Digital currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [3][8]. - Stocks with a Zacks Rank 1 and 2 have demonstrated significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][8]. Recent Stock Performance - The stock has appreciated by 18.5% over the past four weeks, driven by strong estimate revisions, suggesting potential for further upside [9].

Core Insights - Western Digital (WDC) is positioned to potentially continue its earnings-beat streak in upcoming reports, particularly within the Zacks Computer-Storage Devices industry [1] - The company has a history of beating earnings estimates, with an average surprise of 6.31% over the last two quarters [1] Earnings Performance - For the most recent quarter, Western Digital reported earnings of $1.22 per share, missing the expected $1.36 per share by 11.48% [2] - In the previous quarter, the company reported $1.77 per share against an expectation of $1.75 per share, resulting in a surprise of 1.14% [2] Earnings Estimates and Predictions - Recent estimates for Western Digital have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong potential for an earnings beat [5] - The current Earnings ESP for Western Digital is +3.70%, suggesting that analysts are optimistic about the company's earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank 1 (Strong Buy) indicates a high likelihood of another earnings beat [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

CHONGQING, CHINA - JULY 28: In this photo illustration, a person holds a smartphone displaying the ... More logo of Western Digital Corporation (NASDAQ: WDC), a leading American data storage company known for manufacturing hard drives, solid-state drives, and NAND flash memory, with the company's multicolored logo visible in the background, on July 28, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images) Getty Images Western Digital (NASDAQ: WDC is scheduled to announce its fiscal fourth ...

Core Viewpoint - Western Digital reported quarterly earnings of $1.36 per share, exceeding the Zacks Consensus Estimate of $1.22 per share, and showing significant growth from $0.63 per share a year ago [1][2] Financial Performance - The company achieved revenues of $2.29 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.07%, but down from $3.46 billion year-over-year [3] - Over the last four quarters, Western Digital has exceeded consensus EPS estimates four times and revenue estimates twice [2][3] Stock Performance - Western Digital shares have declined approximately 31.9% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [4] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $2.38 billion, and for the current fiscal year, it is $4.62 on revenues of $9.24 billion [8] - The estimate revisions trend for Western Digital has been unfavorable leading up to the earnings release [7] Industry Context - The Computer-Storage Devices industry, to which Western Digital belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [9]