Western Digital Corporation WDCis slated to report third-quarter fiscal 2018 results on Apr 26. The company has witnessed a remarkable streak of beating earnings estimates, especially when looking at the previous four reports. In fact, in each of the trailing four quarters, Western Digital surpassed the Zacks Consensus Estimate, with an average positive earnings surprise of 6.
4%.Due to expansion in digital data, modest growth of TAM and higher demand for storage, Western Digital’s prospects look bright. Additionally, the company’s expanding product portfolio, secular growth of digital data, growing exposure to the SMB space and positive synergies derived from the SanDisk acquisition are likely to act as catalysts for Q3 results.
What the Zacks Model Unveils?
Our proven model shows that Western Digital is likely to beat earnings this quarter as it possesses the two key components. A stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Western Digital flaunts a Zacks Rank of 1 and has an Earnings ESP of 2.30%.
The Zacks Consensus Estimate for the fiscal third-quarter earnings is pegged at $3.27, indicating an increase of 36.8% from the year-ago quarter’s figure. We note that the Zacks Consensus Estimate has moved up by a penny over the past seven days. Additionally, analysts polled by Zacks project revenues of roughly $4.93 billion, up 6.1% from the year-ago quarter.