Western Digital, Seagate Soar on Western Digital's Earnings

Shares of hard-disk drive-makers Western Digital

and Seagate Technology

have moved significantly higher on Thursday after Western Digital reported strong earnings on Wednesday. The company reported fourth-quarter net income of $745 million or $2.87 per share, compared to $158 million or $0.67 per share, in the year ago period. On an adjusted basis, which is comparable to analysts' consensus, the company said that net income was $872 million or $3.35 per share, compared to $193 million or $0.81 per share, in last year's fourth-quarter. This came in well ahead of Wall Street consensus EPS estimates of $2.47. Revenues in the period rose to $4.75 billion from $2.40 billion last year.This also beat analysts' consensus revenue estimates of $4.25 billion. Hard drive shipments surged in the fourth-quarter to 71 million compared to 53.8 million last year. The dramatic increase in profits and revenue for Western Digital has sent the stock up more than 19% to $38.66. Traders are also interpreting the results as being bullish for Western Digital competitor Seagate Technology. That stock has climbed 13% and was last trading at $29.73.