Western Digital reported fiscal third quarter earnings and sales that surpassed expectations, driving the stock lower late Thursday. The company’s adjusted earnings came in at 63 cents per share on sales of $3.46 billion for the March-ending quarter, beating analyst predictions of 22 cents per share on sales of $3.37 billion.
Despite the positive news, Western Digital is still facing challenges in the data storage market. For the current quarter, the company expects sales of $3.7 billion at the midpoint of its range, slightly below analyst projections of $3.71 billion for the June-ending quarter. However, Western Digital remains a key player in the industry and has strong growth potential moving forward.
Before the earnings report, Western Digital stock closed flat at $69.44 on Thursday. Over the past year, the stock has gained 111%, making it one of the best performing stocks in its sector. Despite recent struggles with earnings, Western Digital has a strong Relative Strength rating of 96 out of 99 and an IBD Composite Rating of 66, which combines five separate proprietary ratings into one rating. The best growth stocks typically have a Composite Rating of 90 or higher.
Investors are closely monitoring Western Digital’s performance and future prospects as it continues to navigate the data storage market. The company announced plans to spin off its flash and hard-drive businesses in October, with completion targeted for the second half of 2024. With a focus on innovation and technology, Western Digital remains a significant player in the data storage sector and has potential for further growth and success in coming months and years.
