stock tumbled in premarket trading despite beating fourth-quarter earnings estimates. The problem was with the guidance.
Western Digital (ticker:
) said it expects first-quarter adjusted earnings per share to range between 35 cents and 65 cents, well below consensus estimates for $1.88, according to FactSet. Revenue will range between $3.6 billion and $3.8 billion, below estimates for $4.75 billion.
The stock was down 7% in premarket trading to $46.17.
For the June quarter, Western Digital reported earnings of $1.78 a share on $4.53 billion in sales. Analysts were expecting earnings of $1.74 a share on $4.57 billion in revenue.
The company closed out fiscal 2022 with $18.79 billion in sales vs. estimates of $18.6 billion. Adjusted earnings per share were $8.22, topping forecasts for $8.18.
“In addition to strong financial performance, fiscal year 2022 was a hallmark year for Western Digital from an innovation, product development and execution perspective,” said CEO David Goeckeler in a press release.
Adjusted gross margin fell by 0.6 a percentage point in the fourth quarter to 32.3%, but increased by 4.3 percentage points year over year to 32.9%. The margin is expected to contract to between 27.5% to 29.5% in the first quarter of fiscal 2023, the company said.
The company will host an earnings call at 8:30 a.m. Eastern time. Investors will be eagerly waiting to hear an update on the company’s progress in determining whether it will divide itself in two following pressure from activist investor Elliott Investment Management.
Write to Sabrina Escobar at [email protected]