Western Digital Releases Earnings Report, Falls Short of Expectations

Western Digital (NASDAQ:WDC) announced its quarterly earnings on Wednesday. The data storage company reported earnings of $1.55 per share (EPS) for the quarter, which was below the analysts' consensus estimate of $1.91, missing expectations by $0.36. In addition, Western Digital recorded a return on equity of 8.57% and a net margin of 4.81%. Furthermore, the company provided an update on its guidance for the third quarter of 2025, projecting an EPS in the range of $0.900 to $1.200.

Western Digital Stock Performance

On the day of the earnings report, Western Digital's stock saw a slight decline of 0.1%, trading down by $0.07 to reach $62.80. The trading volume for the day was 10,451,925 shares, significantly higher than the average volume of 6,069,527 shares. Financial ratios for the company include a current ratio of 1.47, a quick ratio of 0.91, and a debt-to-equity ratio of 0.49. Currently, Western Digital has a market capitalization of $21.71 billion and a price-to-earnings ratio of 36.94. Over the past year, the stock has experienced a low of $52.77 and a high of $81.55.

Analyst Ratings and Price Targets

In the wake of the earnings announcement, several analysts shared their perspectives on Western Digital's stock. Wells Fargo lowered its price target from $95.00 to $85.00 while maintaining an 'overweight' rating. Susquehanna increased their target from $75.00 to $83.00, assigning a 'neutral' rating. Meanwhile, Goldman Sachs adjusted their price objective from $81.00 to $70.00 with a 'neutral' rating as well. Benchmark downgraded the stock from a 'buy' to a 'hold' while setting a target price of $70.00. Bank of America also lowered its target from $89.00 to $80.00, continuing to rate the stock as 'buy'. Presently, MarketBeat indicates that seven analysts have given the stock a hold rating while fourteen analysts have issued buy ratings, leading to an overall average rating of 'Moderate Buy' and an average price target of $85.68.

Insider Transactions

In related news, SVP Gene M. Zamiska sold 658 shares of Western Digital stock in a transaction that took place on November 26th, receiving an average price of $69.99 per share. This sale totaled approximately $46,053. Following this transaction, Zamiska holds 28,863 shares valued at about $2,020,121. Additionally, insiders have sold a total of 1,347 shares worth approximately $93,027 in the past 90 days. Currently, insiders own 0.30% of the company's stock.

About Western Digital

Western Digital Corporation specializes in the development, manufacturing, and selling of data storage devices and solutions. The company serves various markets across the U.S., China, Hong Kong, Europe, the Middle East, Africa, and the rest of Asia. Its product lineup includes client devices, hard disk drives, solid-state drives, and flash-based embedded storage products used in mobile devices, PCs, gaming consoles, and other applications.

Earnings, Stock, Analysis