Western Digital Corp. (
is slated to report its fourth-quarter 2013 results on Jul 24,
2013. In the last quarter, it posted a 17.32% positive surprise.
Let's see how things are shaping up for this announcement.
Growth Factors This Past Quarter
The company delivered decent first-quarter 2013 results, with
earnings per share of $2.10 beating the Zacks Consensus Estimate
of $1.79. The company also witnessed substantial increase in
revenues, although margins shrank, as increased innovation
resulted in higher R&D expenses.
Western Digital has benefited from the secular growth of
digital data and its growing exposure to the small and medium
business segment. The company is rolling out storage devices to
attract more customers.
Positive Zacks ESP:
Earnings Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
Estimate and the Zacks Consensus Estimate, is at +0.56%. This is
meaningful and a leading indicator for a likely positive earnings
surprise for shares.
Zacks Rank #2 (Buy):
The combination of Western Digital's' Zacks Rank #2 (Buy) and
+0.56% ESP makes us very confident about a positive earnings beat
on Jul 24.
We caution against stocks with Zacks Ranks #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions
Other Stock to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
APPLE INC (AAPL): Free Stock Analysis Report
COMP SCIENCE (CSC): Free Stock Analysis
WESTERN DIGITAL (WDC): Free Stock Analysis
ZYNGA INC (ZNGA): Free Stock Analysis Report
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), which has Earnings ESP of +14.29% and carries a Zacks Rank
#1 (Strong Buy)
), which has Earnings ESP of +2.6% and carries a Zacks Rank #3
Computer Sciences Corporation
), which has Earnings ESP of +4.69% and carries a Zacks Rank #2