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Western Digital Sees $13/Sh Earnings in Calendar 2018

Analysts had been modeling $5.13 billion and $3.31 per share in net income.

In a separate document posted on the company's investor relations Web site, Western said its "exabytes shipped" rose slightly for "client" devices, to 39.5 from 39.2 a year earlier. For "data center" devices, shipments were up 24% at 35.4.

Shipments of hard disks declined 11%, year over year, to 42.2 million units. Average selling price for drives was unchanged at $61.

The company said its "days of sales outstanding" dropped two days to 37, while "days of inventory outstanding" was up 8 days at 64 days.

CEO Steve Milligan characterized the results as "strong, noting the "strong operating cash flow," and the "healthy demand in many of our end markets, most notably in our flash-based businesses."

"With unabated growth in data creation leading to new challenges and opportunities for our customers, our transformation continues to resonate in the marketplace," said Milligan.

Update: On a conference call with analysts, Western management forecast revenue this quarter of $5.2 billion to $5.3 billion, below consensus for $5.28 billion. EPS is seen in a range of $3.60 to $3.70 per share, which is better than the average $3.53 estimate.

The company also said it intends to deliver $13 per share in earnings in calendar 2018, which would be a buck higher than the current Street consensus, according to FactSet.

The stock, after waffling a bit, is now up 64 cents, or 0.7%, at $90.02.


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