Western Digital reported better-than-expected earnings and sales for its fiscal third quarter, sending its stock trading lower late Thursday. The company earned an adjusted 63 cents per share on $3.46 billion in sales, compared to analyst predictions of 22 cents per share on $3.37 billion in sales. Despite this strong performance, Western Digital’s stock was down fractionally in after-hours trading.
Looking ahead, Western Digital guided for sales of $3.7 billion at the midpoint of its range for the current quarter, slightly below analyst projections of $3.71 billion, according to FactSet. As one of the largest makers of hard disk drives and flash data storage products, Western Digital plans to spin off its flash and hard-drive businesses by the second half of 2024. Prior to earnings, Western Digital stock was trading flat at $69.44, a 32% increase year-to-date and 111% in the past 12 months.
Western Digital’s technical ratings indicate mixed performance, with a Composite Rating of 66 out of 99, an EPS Rating of 5 out of 99, and a Relative Strength rating of 96 out of 99. Despite recent struggles in earnings, investors are optimistic about a potential turnaround in Western Digital stock. However, it’s important to note that other data storage companies like Nvidia and Amazon may also be worth considering as potential investments. Additionally, learning from growth stock experts in programs like IBD Live can provide valuable insights for making investment decisions.