Baird Remains Bullish on Western Digital (WDC) Following an EPS Beat

Baird maintained an Outperform rating and $105.00 price target on Western Digital Corp. (NASDAQ: WDC), following 4Q15 results. WDC reported revenue of $3.2 billion compared with consensus of $3.25 billion. Non-GAAP EPS of $1.51 beat consensus estimates of $1.46. WD expects revenue/non-GAAP EPS of $3.2-$3.3 billion/$1.50-$1.60 versus consensus of $3.5 billion/$1.76 in the September Quarter.

Analyst Jayson Noland commented, "Management provided conservative September-quarter guidance as expected, but remains optimistic that the PC market is beginning to stabilize and will improve in the second-half of this year. The company was positive regarding 2H'C15 Cloud which we continue to view as a long-term profit driver. We believe WDC is executing well in a challenging market, and that PC weakness and revised expectations have created an attractive entry point."

Noland also added, "We adjusted our F16E revenue/non-GAAP EPS to $13.3 billion/$7.00 from $13.7 billion/$7.00, which assumes a (8%) YoY top-line decline."

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 $78.75 yesterday.

You May Also Be Interested In

• UBS Upgrades UDR, Inc. (UDR) to Buy
• Raymond James Downgrades Western Digital Corp. (WDC) to Market Perform 'primarily on valuation'
• Truist Securities Downgrades HashiCorp Inc (HCP) to Hold