Western Digital WDC announces its next round of earnings this Thursday, January 28. Here is Benzinga's everything-that-matters guide for this Thursday's Q2 earnings announcement.
Net Income, Earnings, And Earnings Per Share
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Based on Western Digital management projections, analysts predict EPS of $0.54 on revenue of $3.87 billion. In the same quarter last year, Western Digital reported EPS of $0.62 on revenue of $4.23 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to report earnings in line when it publishes results Thursday, earnings would be down 12.9%. Sales would be down 8.6% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q1 2020 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.54 | 1.21 | 0.93 | 0.57 |
| EPS Actual | 0.65 | 1.23 | 0.85 | 0.62 |
| Revenue Estimate | 3.83 B | 4.34 B | 4.18 B | 4.22 B |
| Revenue Actual | 3.92 B | 4.29 B | 4.17 B | 4.23 B |
Stock Performance
Shares of Western Digital were trading at $52.06 as of January 26. Over the last 52-week period, shares are down 22.24%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Western Digital is scheduled to hold the call at 16:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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