Here’s Why Western Digital Corp (NASDAQ:WDC) Shares Are Rallying

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Western Digital Corp (NASDAQ:WDC) shares rose 1.65% on Wednesday and an additional 4.71% in after-hours trading to $47.60. The company has a market cap of $10.19 billion at 233 million shares outstanding. Shares have been trading in a 52-week range of $34.99 to $88.46.

Western Digital Corp is is a developer, manufacturer and provider of data storage solutions that enable consumers, businesses, governments and other organizations to create, manage, experience and preserve digital content. Its product portfolio includes hard disk drives, solid-state drives, direct attached storage solutions, personal cloud network attached storage solutions, and public and private cloud data center storage solutions.

The company recently announced that Mark Long will succeed Olivier Leonetti as chief financial officer by September this year, in addition to his role as chief strategy officer. Long has served as the chief strategy officer at Western Digital and HGST over the past three years and will continue in that role. He was instrumental in conceiving, executing and completing the acquisition of SanDisk by Western Digital Corp.

I am honored to succeed Olivier and look forward to working with the entire team as we continue on the path of long-term value creation for all of our stakeholders,” said Long. “I cannot think of a more exciting time to step into this position as we integrate and evolve. There are significant opportunities ahead of us as we come together and strive to reach our potential as the leading storage solutions provider.”

Apart from that, Western Digital Corp shares also got a boost from an improved forecast for Q4. expects to report fourth quarter non-GAAP EPS of about $0.72, up from prior expectations for EPS of $0.65 to $0.70. Taking the acquisition of SanDisk into consideration, management now expects fourth quarter revenue to be approximately $3.46 billion, compared to its earlier forecast of $3.35 billion to $3.45 billion.

 

DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.

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