Needham & Company Applauds Western Digital (WDC) Q3

April 25, 2013 12:27 PM EDT
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Price: $71.62 +0.87%

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Better-than-expected Q3 results from Western Digital Corp. (NASDAQ: WDC) was no surprise for Needham & Company, which has a 'Strong Buy' rating on the stock, but given that the company is "thriving" despite a weak PC market it should be commended. The firm used today's news to lift its price target from $46 to $65.

Western Digital reported Q3 EPS of $2.10, $0.33 better than the analyst estimate of $1.77. Revenue for the quarter came in at $3.76 billion versus the consensus estimate of $3.61 billion.

Analyst Richard Kugele comments, "Amidst the famine that is the current PC market, supply chain players surviving is impressive. Thriving, as WDC is clearly doing, is then a function of crisp execution and discipline. With a positive mix shift away from PC-centric markets and additional cost savings likely coming in future quarters, we expect more of the same from WDC as the year progresses. Adjusting estimates slightly for the modestly lower TAM while recognizing that our F14 estimates do not contemplate the potentially significant HGST integration savings."

The firm raised its FY 2013 EPS estimate from $8.19 to $8.32, while cutting FY 2014 EPS from $9.01 to $8.49.

For an analyst ratings summary and ratings history on Western Digital Corp. click here. For more ratings news on Western Digital Corp. click here.

Shares of Western Digital Corp. closed at $52.90 yesterday.

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