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Thursday, April 24, 2008

Western Digital Q3:2008 Results

Revenues come in about 50mm better at 2.11 bil. EPS blow out at $1.23 with street closer to $1.10 on a gross margin upside of 22.6% relative to consensus of 21.9%

No guidance in the release. Reading it, they think they're in a totally different market from Seagate. The street has a big down quarter modeled in the wake of Seagate... and they're a little arrogant. I kind of think the guidance is going to be better than the models for next Q. We'll see.


Aaron Task said...

Any explanation for WDC's slide today?

Roy Howard said...

Well, revenue guidance slightly below the mean. They said they shut down their production almost entirely in the month of March. They guided gross margins to 20% for next quarter which doesn't seem unreasonable.

Clearly the stock is too expensive at 7* this year's estimate (cough). Historically disk drive market share battles are pretty bloody. I can only assume investors are thinking this time will be no different and are much using lower estimates.

Roy Howard said...

Er. Using much lower estimates.

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