Western Digital stock was trading lower late Thursday after the data storage company reported fiscal third quarter earnings and sales that easily topped expectations.
Western Digital said that it earned an adjusted 63 cents per share on sales of $3.46 billion for the March-ending quarter. On average, analysts projected the San Jose, Calif.-based company would post adjusted earnings of 22 cents per share on sales of $3.37 billion, according to FactSet.
For the current quarter, Western Digital guided for sales of $3.7 billion at the midpoint of its range. Analysts were projecting the company would tally $3.71 billion in sales for the June-ending quarter, according to FactSet.
On the stock market today, Western Digital stock is down fractionally in recent after-hours action.
Western Digital Stock: Technical Ratings
Western Digital is one of the largest makers of hard disk drives in the world and also among the market leaders in flash data storage products. In October, the company announced plans to spin off its flash and hard-drive businesses. In a news release last month, the firm said the plans are on track to be completed by the second half of 2024.
Prior to earnings, Western Digital stock traded flat to close at 69.44 in Thursday trading. Shares have gained 32% this year and 111% in the past 12 months.
Coming into the report, Western Digital stock had an IBD Composite Rating of 66 of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Recent earnings struggles give Western Digital a dismal EPS Rating of 5 out of 99. But investors have been betting on a turnaround, with Western Digital stock holding a Relative Strength rating of 96 out of 99, indicating the company's shares have outperformed the broader market in the past 52 weeks.
