Western Digital Follows Seagate, Boosts Guidance

| About: Western Digital (WDC)
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Western Digital raised its fiscal Q1 2008 (September-quarter) outlook on Monday, citing "improvements in demand, product mix and pricing," after its rival, Seagate, issued upward revised guidance in late August. Western Digital now expects earnings per share of $0.61-$0.65 (excluding Komag acquisition-related costs), compared to its previous guidance from late July of $0.43-$0.47. Analysts had been forecasting EPS of $0.51, on average. Revenues are now seen between $1.6 billion-$1.65 billion, vs. $1.45B-$1.5B previously and analyst expectations of $1.49B. Western Digital projects gross margin of about 17.5%, a 1.5%-2.0% improvement over its earlier guidance. In a statement, Western Digital also said it expects the Komag acquisition to be accretive to earnings by fiscal Q4 2008, instead of fiscal Q1 2009, as it had initially announced. Shares of Western Digital rose 0.2% to $22.41 during normal trading, and traded up 2.6% to $23.00 in thin after-hours activity.

Sources: Press release, Associated Press, TheStreet.com
Commentary: Western Digital Joins Seagate in Boosting FY Q1 GuidanceSeagate, Western Digital: Expecting Seasonal Updrafts in Volume and EarningsContinued Pricing Power in Store For Data Storage?
Stocks/ETFs to watch: WDC. Competitors: STX, HIT, OTCPK:FJTSY

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