Western Digital slides heading into earnings as AI trade tumbles
WDC•Western Digital shares fell 7.4% to $350.59 ahead of quarterly results due after the market close. Analysts expect fiscal first-quarter revenue of $4.14 billion and adjusted earnings per share of $4.09.
1. Shares fall ahead of results
Western Digital shares dropped 7.4% to $350.59 on Thursday ahead of quarterly results due after the market close, as technology stocks fell and enthusiasm for the AI trade faded. The S&P 500 technology sector was down 3%, reversing Wednesday’s AI-fueled relief rally.
2. Analyst expectations
Analysts expect fiscal first-quarter revenue to rise 47% year over year to $4.14 billion and adjusted earnings per share to reach $4.09, compared with $1.78 a year earlier. In August, Western Digital forecast quarterly revenue slightly above estimates, but its shares fell as the outlook did not meet expectations.
3. Year-to-date performance
Despite Thursday’s decline, the stock has gained about 104% year to date, compared with a 21% rise for the S&P 500 technology sector and a 12% advance for the Nasdaq. The stock recently traded at 15 times forward earnings, below its five-year average of 17; 20 of 27 analysts rated it “strong buy” or “buy,” and the median price target of $625 implied roughly 78% upside.
