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Western Digital Corporation (WDC)

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  • Jan. 5, 2012, 10:35 AM
    Seagate's (STX +5.8%) strong FQ2/FQ3 guidance is triggering a broader rally in makers of storage drives - both hard drives and solid-state drives - as investors eagerly anticipate a 1H environment of strong pricing and high margins. WDC +6.6%. OCZ +5.4%. STEC +4.4%. SNDK +1.1%. At a valuation of just 3x its estimated FY13 (ends June '13) EPS, Needham thinks Seagate is still dirt cheap.
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  • Jan. 4, 2012, 5:27 PM
    Seagate (STX) jumps 6.1% AH after stating it expects FQ2 (ended in December) revenue of $3.1B-$3.2B and FQ3 revenue of $4.2B-$4.5B, well above consensus estimates of $2.8B and $3.6B, respectively. Gross margins are also expected to surge. Seagate was expected to profit handsomely from its minimal exposure to the hard drive industry disruptions caused by Thai flooding; now we know how much. WDC +2.3%
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  • Dec. 27, 2011, 3:52 PM
    FBR's Craig Berger's checks lead him to believe (as others do) that hard drive production is rebounding faster than expected after being devasted by Thai flooding. He now expects production to reach 135M units in Q1 (prior forecast of 125M), and grow to 162M in Q2. This leads him to reiterate an Outperform on hard drive chipmaker LSI, whom he thinks could deliver consensus-beating Q1 revenue. (also)
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  • Dec. 27, 2011, 8:48 AM
    The Chinese government asserts Western Digital's (WDC) planned purchase of Hitachi's (HIT) hard drive division will "exert a negative impact on Chinese consumers," and says it will seek "appropriate solutions" to deal with the issue. Chinese regulators already drove a hard bargain with Seagate (STX) over its purchase of Samsung's hard drive unit. (EU approval)
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  • Dec. 16, 2011, 11:50 AM
    Western Digital (WDC +1.9%) is outperforming today, while the opposite holds for Seagate (STX -1.1%), as well as solid-state drive vendors OCZ (OCZ -1.2%) and STEC (STEC -0.7%). The culprit could be remarks from circuit board maker GBM about hard drive supply shortages likely easing in Q1, ahead of expectations. Western Digital's lost production is heavily responsible for the shortages.
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  • Dec. 13, 2011, 9:45 AM
    If Digitimes Research is right, the hard drive industry's supply issues will improve considerably after January, thanks to the recovery efforts of Western Digital (WDC) and its component suppliers. Global hard drive supplies are expected to increase 18% Q/Q in Q2, to 165M units, and PC manufacturer inventories are expected to go from seeing a 4M unit shortage in Q1 to a small surplus in Q3.
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  • Dec. 3, 2011, 10:45 AM
    "We're at an inflection point in history," says Loews' (L) savvy investment chief Joe Rosenberg, comparing today's equity market to Treasuries in the early 80s when he had trouble convincing folks to buy long bonds yielding 15%. One favorite is Microsoft (MSFT), a better buy by every metric than a recent purchase of Warren Buffett's. Among his other picks: JNJ, MRK. A pan: Treasuries, "in the final throes of one of the greatest bubbles I have ever seen."
  • Dec. 2, 2011, 10:04 AM
    Western Digital (WDC +13.1%) surges higher in the early going after raising its FQ2 sales outlook and painting a milder view of the impact of Thailand's flooding. Think Equity raises its rating to Buy and hikes its price target to $40 from $25: "WDC appears to be managing the crisis very effectively and hence appears unlikely to lose as much share as we had previously anticipated."
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  • Dec. 2, 2011, 9:55 AM
    Western Digital (WDC +12%) is taking off in the wake of its FQ2 guidance hike. However, top competitor Seagate (STX -1%) is underperforming, as the news leads investors to fear the benefits seen by the latter from the former's Thai troubles may not be as large as expected. Storage giants EMC (EMC +1.5%) and NetApp (NTAP +0.8%) are rising with the market.
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  • Dec. 2, 2011, 4:54 AM
    Western Digital (WDC) joins Seagate (STX) in signalling a recovery from the Thai floods, saying that it has restarted the output of hard disk drives and that it is raising its FQ2 rev outlook to at least $1.8B. That's above Street forecasts and prior guidance. WDC is also upbeat on margins but expects to take a charge of $225M-$275M. (PR)
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  • Nov. 29, 2011, 12:06 PM
    Seagate's (STX +3.8%) guidance hike, which includes optimistic shipment forecasts for the March quarter, is providing a lift to archrival Western Digital (WDC +4.4%), as well as flash memory vendors OCZ Technology (OCZ +5.7%) and Fusion-io (FIO +5.4%). Intel (INTC +1.4%), Nvidia (NVDA +1.1%), and AMD (AMD +2.1%) might also be getting a boost, given Seagate's importance to the PC industry.
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  • Nov. 23, 2011, 10:15 AM
    Seagate (STX) CEO Steve Luczo provides more bad news for the PC industry (I, II), courtesy of an interview with AllThingsD. As bad as Q4 is expected to be for hard drive shipments, Luczo predicts Q1 will be "much more difficult," and that supply won't match demand until the end of 2012. Moreover, Luczo claims many of the drives top rival WDC will ship will be low-end products, due to a lack of needed parts.
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  • Nov. 23, 2011, 9:27 AM
    Western Digital (WDC) gains 0.8% after its acquisition of Hitachi's (HIT) hard drive business is given a green light by EU regulators. In return for the go-ahead, Western Digital has agreed to sell a hard drive manufacturing plant and other "essential production assets." Archrival Seagate's (STX) purchase of Samsung's hard drive division was cleared in October. (yesterday)
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  • Nov. 21, 2011, 8:39 AM
    Western Digital (WDC) reports that it lost an arbitration case brought against it by rival Seagate Technology (STX). Execs with the firm say they will vigorously challenge the $525M award that stemmed from alleged misappropriation of confidential information and trade secrets. Premarket: STX -2.5%, WDC -0.8%.
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  • Nov. 17, 2011, 10:53 AM
    Unsurprisingly, some storage-related names are selling off following NetApp's (NTAP -11.7%) disappointing FQ2 report (I, II, III). EMC -2.6%. STX -1.4%. WDC -1.4%. LSI -1.8%. OCZ -3.9%. SNDK -2.6%. QTM -2.7%. (NTAP transcript)
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  • Nov. 16, 2011, 12:25 PM
    Western Digital (WDC +8.4%) jumps after Reuters reports that the EU plans to conditionally approve its bid to acquire Hitachi's (HIT -1.4%) hard disk drive business. Separately, the company also says it's inked a supply agreement with TDK for hard-disk-drive components starting in the first quarter, which should alleviate some of the production problems the company is experiencing due to  Thailand floods. 
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Company Description
Western Digital Corp is a developer, manufacturer & provider of data storage solutions that enable consumers, businesses, governments & other organizations to create, manage, experience & preserve digital content. Its product include; HDDs and SSDs.
Sector: Technology
Country: United States