Western Digital Sinks on Weak Quarterly Outlook
By Christiana Sciaudone
Investing.com -- Western Digital (NASDAQ:WDC) fell 17% to around $37 after disappointing investors with its outlook.
The fiscal first quarter outlook calls for earnings per share of 45 cents to 65 cents on sales of $3.7 billion to $3.9 billion compared to the average analyst expectation of $1.35 a share on revenue of $4.36 billion, MarketWatch said.
Fourth quarter revenue rose 18% to $4.3 billion compared to a year earlier, and versus the $4.34 billion average expected by analysts tracked by Investing.com. Earnings per share of $1.23 compared to the forecast of $1.22.
Despite the sour news, Benchmark Co. analyst Mark Miller maintained his buy rating on Western Digital, setting a price target of $52. He expects the company to post earnings per share 6 cents for the third quarter.
Shares have 11 buys, two holds and one sell, with an average price target of $55.70, according to analysts surveyed by Investing.com.
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