How Does Western Digital View Fiscal 1Q18?



Revenue of $5.1 billion

In fiscal 1Q18 (ended September 30, 2017), hardware tech (QQQ) firm Western Digital (WDC) expects to see revenues of $5.1 billion, which would mean revenue growth of 8% YoY (year-over-year). Its non-GAAP (generally accepted accounting principles) gross margin is expected to be 41%, with EPS (earnings per share) between $3.25 and $3.35.

WDC expects its operating expenses in fiscal 1Q18 to be similar to those in fiscal 4Q17 at ~$812 million, driven by its integrated portfolio of storage products and solutions. WDC expects EPS of $12.00 in calendar 2017.

During WDC’s fiscal 1Q18 earnings call, CFO (chief financial officer) Mark Long stated: “We believe our integrated product and technology platform is a key differentiator that will enable strong long-term growth and profitability.”

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Analysts expect revenue of $5.13 billion in fiscal 1Q18

Analysts expect Western Digital to post revenues of $5.13 billion, with a high estimate of $5.27 billion, and a low estimate of $5.1 billion, for fiscal 1Q18. If Western Digital meets the analyst revenue estimate of $5.13 billion, it would mean a YoY (year-over-year) rise of 8.9% over fiscal 1Q18.

WDC’s EPS are expected to reach $3.30, with a low estimate of $2.95 and a high estimate of $3.45 for fiscal 1Q18. Western Digital has beaten the analyst EPS estimates for the past five quarters.

In fiscal 4Q17, WDC beat its EPS estimate by 4.3% when the firm announced EPS of $2.81. WDC also beat the analyst EPS estimate by 8.5%, 48.1%, and 11.7%, in fiscal 2Q17, fiscal 1Q17, and fiscal 3Q17, respectively.


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