Is Western Digital Marking A Bottom? Analysts Takeaways On FQ4 Print, Outlook

Shares of Western Digital Corp WDC were trading lower on Tuesday, even though the company reported upbeat earnings for its fiscal fourth quarter.

The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

Wedbush On Western Digital

Analyst Matt Bryson maintained an Outperform rating and price target of $60.

Western Digital reported revenues ahead of expectations, “while announcing a loss just shy of the company's prior guide,” Bryson wrote in a note. “Modest upside was driven by some improvement in consumer/client demand, albeit offset by softer enterprise conditions,” he added.

The company’s guidance for the fiscal first quarter was also short of consensus estimates, the analyst said. “However, more important than both of these points, in our view, is WDC's expectation that FQ1/CQ3 will mark a bottom for results,” he further stated.

Check out other analyst stock ratings.

Mizuho Securities On Western Digital

Analyst Vijay Rakesh reiterated a Buy rating and price target of $45.

The company’s NAND gross margins “continue to be impacted by underutilization,” Rakesh said in a note. “Cloud/Enterprise demand remains weak, though PC and Consumer stabilizing and returning to y/y bit shipment growth in the JunQ,” he added.

“We believe WDC under-shipping C23E NAND, with bit shipments up modestly y/y vs. we estimate bit demand up 15%,” the analyst further wrote.

Benchmark On Western Digital

Analyst Mark Miller reaffirmed a Hold rating on the stock.

“Revenues in both the Flash Client and Consumer segments are returning to growth,” Miller said.

“Normalizing inventories, increasing content per unit in flash and moderating flash price declines are expected to produce sales growth and improving margins after a flattish September quarter,” the analyst wrote. While Western Digital is likely to report a “significant” loss in fiscal 2024, it could generate “modest profits” by the end of that year, he added.

WDC Price Action: Shares of Western Digital had declined by 2.02% to $41.70 at the time of publication Tuesday.

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