Western Digital Earnings Up Next

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Western Digital (NAS: WDC) is expected to report Q1 earnings on Oct. 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Western Digital's revenues will grow 46.6% and EPS will grow 110.0%.

The average estimate for revenue is $3.95 billion. On the bottom line, the average EPS estimate is $2.31.


Revenue details
Last quarter, Western Digital booked revenue of $4.75 billion. GAAP reported sales were 98% higher than the prior-year quarter's $2.40 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $3.35. GAAP EPS of $2.87 for Q4 were 335% higher than the prior-year quarter's $0.66 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 31.0%, 1,150 basis points better than the prior-year quarter. Operating margin was 19.3%, 1,040 basis points better than the prior-year quarter. Net margin was 15.7%, 910 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $15.81 billion. The average EPS estimate is $8.89.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,292 members out of 1,365 rating the stock outperform, and 73 members rating it underperform. Among 282 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 269 give Western Digital a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Digital is outperform, with an average price target of $44.08.

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The article Western Digital Earnings Up Next originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Western Digital. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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