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Will WDC Beat Revenue and Earnings Estimates in Fiscal Q4 2018?

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Analysts expect revenue of $5.07 billion in the fiscal fourth quarter

In this series, we’ll look at pre-earnings estimates for Western Digital (WDC) and Seagate (STX). We’ll also try to analyze their earnings and revenue growth rates, and we’ll compare their price targets and valuation ratios to their peers’.

Western Digital is expected to report its fiscal fourth-quarter results on July 26. Analysts expect it to post revenue of $5.07 billion, a rise of 4.6% YoY (year-over-year) compared to $4.84 billion in the fiscal fourth quarter of 2017. Its non-GAAP EPS are expected to be $3.5, a rise of 19.5% YoY compared to $2.93 in the fiscal fourth quarter of 2017.

Peer storage companies Seagate (STX), NetApp (NTAP), and Hewlett Packard Enterprise (HPE) are expected to announce their quarterly results on July 30, August 15, and September 4, respectively.

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WDC beat earnings estimates in each of the last four quarters

As we can see in the chart above, WDC has managed to beat analysts’ average earnings estimates in each of the last four quarters. It beat analysts’ fiscal third-quarter earnings estimate of $3.3 by 10% with reported EPS of $3.63. Western Digital also beat analysts’ earnings estimate of $3.79 by 4.2% in the fiscal second quarter with reported EPS of $3.95.

In the fiscal first quarter, analysts expected WDC to post EPS of $3.3. Instead, it reported EPS of $3.56, 7.9% higher than the estimate. In the fiscal fourth quarter of 2017, its EPS were $2.93, 4.3% above analysts’ estimate of $2.81.

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