Western Digital WDC is gearing up to announce its quarterly earnings on Wednesday, 2025-04-30. Here’s a quick overview of what investors should know before the release.
Analysts are estimating that Western Digital will report an earnings per share (EPS) of $1.11.
The market awaits Western Digital’s announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It’s important for new investors to understand that guidance can be a significant driver of stock prices.
Performance in Previous Earnings
During the last quarter, the company reported an EPS missed by $0.05, leading to a 4.75% increase in the share price on the subsequent day.
Here’s a look at Western Digital’s past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.82 | 1.71 | 1.15 | 0.20 |
| EPS Actual | 1.77 | 1.78 | 1.44 | 0.63 |
| Price Change % | 5.0% | 5.0% | -10.0% | 3.0% |
Tracking Western Digital’s Stock Performance
Shares of Western Digital were trading at $40.91 as of April 28. Over the last 52-week period, shares are down 23.15%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analysts’ Perspectives on Western Digital
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Western Digital.
A total of 22 analyst ratings have been received for Western Digital, with the consensus rating being Outperform. The average one-year price target stands at $71.91, suggesting a potential 75.78% upside.
Peer Ratings Overview
The below comparison of the analyst ratings and average 1-year price targets of Pure Storage, NetApp and IonQ, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Pure Storage, with an average 1-year price target of $65.38, suggesting a potential 59.81% upside.
- Analysts currently favor an Neutral trajectory for NetApp, with an average 1-year price target of $119.45, suggesting a potential 191.98% upside.
- Analysts currently favor an Buy trajectory for IonQ, with an average 1-year price target of $43.8, suggesting a potential 7.06% upside.
Key Findings: Peer Analysis Summary
The peer analysis summary outlines pivotal metrics for Pure Storage, NetApp and IonQ, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Western Digital | Outperform | 41.33% | $1.52B | 4.89% |
| Pure Storage | Buy | 11.40% | $594.00M | 3.12% |
| NetApp | Neutral | 2.18% | $1.15B | 31.69% |
| IonQ | Buy | 91.78% | $6.67M | -49.30% |
Key Takeaway:
Western Digital ranks first in revenue growth among its peers. It ranks last in gross profit. It ranks last in return on equity.
Unveiling the Story Behind Western Digital
Western Digital is a leading, vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly with, Western Digital and Seagate being the two largest players. Western Digital designs and manufacturers its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
Western Digital: A Financial Overview
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Western Digital’s remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 41.33%. This signifies a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Western Digital’s net margin is impressive, surpassing industry averages. With a net margin of 13.56%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Western Digital’s ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.89%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company’s ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.31%, the company showcases effective utilization of assets.
Debt Management: Western Digital’s debt-to-equity ratio is below the industry average. With a ratio of 0.61, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for Western Digital visit their earnings calendar on our site.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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