Digital storage company Western Digital boosted its first-quarter outlook on Monday, citing higher selling prices and increased demand. For the quarter ending Sept. 28, the company now expects adjusted earnings per share between 61 cents and 65 cents on revenue ranging from $1.6 billion to $1.65 billion. Analysts, on the other hand, are less optimistic, predicting profit of 48 cents per share on revenue of $1.49 billion, according to Thomson Financial. The previous forecast, issued in July, called for adjusted per share earnings between 43 cents and 47 cents on revenue of $1.45 billion to $1.50 billion. However, according to a statement by WD, "improvements in demand, product mix and pricing thus far in the September quarter are the primary factors driving the improved outlook."
Including the acquisition of Komag Inc. and associated charges, Western Digital projects earnings between 34 cents per share and 38 cents per share on revenue of $1.63 billion to $1.68 billion. That projection includes an estimated charge of $50 million related to in-process research and development. The company said that while it had previously expected the acquisition to contribute to earnings in the first quarter of 2009, it now expects that to happen one quarter earlier.
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