Western Digital Stock Drops 5.3% Despite 72% Q1 EPS Growth Forecast
Western Digital shares fell 5.32% yesterday, underperforming major indices and trailing sector gains, as investors eye upcoming Q1 results forecast at $2.34 EPS (+72%) and $3.23B revenue (+41%). Over the past year, the stock surged 490% on AI-driven demand and efficiencies before a 16% pullback over debt and stake-sale worries.
1. Yesterday’s Performance
Western Digital shares fell 5.32% to close well below the S&P 500’s 1.33% loss, the Dow’s 0.95% slide and the Nasdaq’s 1.59% decline. Over the past month, the stock dipped 0.45% versus sector gains of 0.42% and the S&P 500’s 0.58%.
2. Q1 Forecast and Outlook
Analysts project first-quarter EPS of $2.34, up 72% year-over-year, and revenue of $3.23 billion, a 41% increase, as the company prepares to report results that will test investor confidence after recent underperformance.
3. Annual Rally and Pullback
Over the past year, the stock jumped 490% driven by AI-related demand and improved operating efficiencies post-split but reversed course with a 16% decline following debt reduction and major stake-sale concerns that intensified broader tech sell-off fears.
4. Valuation and Ratings
Western Digital trades at a forward P/E of 28.9 versus the industry average of 17.7, carries a PEG of 0.57 against the 1.41 industry norm and holds a top-tier industry rank alongside a Strong Buy consensus rating.