* Q4 adj EPS $3.35 vs est $2.47
* Q4 rev $4.75 bln vs est $4.25 bln
* Ships 71 mln drives in Q4
* Shares up 20 percent in after-market trade
July 25 Western Digital Corp trounced
lofty Wall Street expectations on record sales, and the hard
disk drive (HDD) maker is banking on the enterprise market to
help maintain its high margins.
Western Digital shares jumped 20 percent in after-market
trade to $38.77. They had closed at $32.47 on Wednesday. Shares
of rival Seagate Technology Plc also rose 12 percent
Prices of hard-drives zoomed in the aftermath of the Thai
floods last year that cramped capacity. But even as production
returns to normal levels, Western Digital and Seagate have
maintained their price premiums.
Western Digital said it expects to maintain its high-gross
margins for the next year on higher sales to businesses and data
The company, which posted gross margins of 31.8 percent in
the fourth quarter, said it sees margins easing to 30 percent in
the current quarter. That is still much higher than the 20
percent gross margin range Wes tern Digital and Sea gate com manded
before the Thai floods.
Western Digital projected a first-quarter profit of $2.45 to
$2.55 per share on revenue of $4.2 billion to $4.3 billion.
Analysts on average were looking for $2.50 per share profit
on $4.45 billion in revenue, according to Thomson Reuters
"Western Digital can deliver non-GAAP earnings per share of
$10 in fiscal 2013," Chief Executive John Coyne said on a
post-earnings call with analysts.
The company, which along with Seagate dominates the HDD
market, shipped a total of 71 million hard drives in the
Profit more than quadrupled to $745 million, or $2.87 per
Excluding items, it earned $3.35 per share.
Revenue during the three-month period more than doubled to
Analysts on average had expected earnings of $2.47 per share
on $4.25 billion in revenue.