Western Digital (WDC) Marketshare Loss More Important Than EPS Upside - BMO

BMO Capital analyst, Tim Long, reiterated his Market Perform rating on Western Digital Corp. (NASDAQ: WDC) after WDC reported solid June results, with EPS of $0.79, ahead of the preannounced $0.72. Guidance was less positive, however, as the September quarter EPS target of $0.85-0.90 was well below consensus expectations of $0.99, though above his prior model.

Western Digital lost more than two points of market share in the quarter, by management’s estimates, as the company chose not to compete on price against STX in certain segments. Management is optimistic about HDD TAM in the September quarter, though the analyst's estimates remain cautiously lower.

No change to the price target of $50.00

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 $53.70 yesterday.

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