Western Digital Raises Q1 EPS View To $1.00-$1.05 From 85c-90c

Western Digital (WDC) updated its expectations for the first fiscal quarter of 2017, saying that following the recent acquisition of SanDisk (SNDK) and the continued progress in integrating its WD and HGST subsidiaries, the company is addressing a larger number of customers with a broader portfolio of hard drive and flash storage products, leading to a better-than-expected product mix.

It now sees Q1 revenue of $4.45B-$4.55B, compared to its earlier forecast of $4.4B-$4.5B, consensus $4.45B. Now sees Q1 non-GAAP gross margin is to be approximately 33%, versus the earlier forecast of 32%, due to the improved mix and pricing.

Western Digital now expects Q1 EPS, on a non-GAAP basis to be $1.00-$1.05, compared with its earlier forecast range of 85c-90c, consensus 90c. The company will report its full results for the first fiscal quarter in late October.