Western Digital Boosts Q1 Forecast, Stock Up 5%

Western Digital Corp WDC increased its earnings and revenue forecast for the first quarter.

The company indicated that it expects first quarter EPS, on an adjusted basis, to be $1.00 to $1.05, up from the previous guidance of $0.85 to $0.90. The revised forecast is higher than the Street estimates of $0.90.

Similarly, Western Digital lifted its revenue outlook from $4.4-$4.5 billion to $4.45-$4.55 billion. Analysts are looking for revenue of $4.45 billion.

The company attributed the upward revision in the outlook to the strong ongoing execution following the integration of SanDisk and HGST subsidiaries. In a statement, the company said, "Net interest expense is forecasted to be lower than previously expected due to the recently completed re-pricing of the company's U.S. Term Loan B debt."

Following the news, the stock advanced $2.60, or 5.47 percent, to $50.15 in the pre-market on Wednesday.