Western Digital Reports Big Surprise

Western Digital Corporation (WDC), the second largest hard drive manufacturer in the world, announced fourth-quarter 2009 results after the bell and easily surpassed expectations. The company reported earnings per share of 76 cents, compared to the Zacks Consensus Estimate of 27 cents.

Revenue fell to $1.9 billion from $2 billion in the year-ago quarter, but the company shipped 40 million hard drives compared to 35.2 million in fourth quarter 2008.

WDC continues to generate cash, adding another $349 million during the quarter and upping its cash hoard to $1.8 billion from $1.6 billion at the end of the last quarter.

“In the June quarter, we responded promptly to capitalize on unexpected market upside in each of our served markets to produce financial results that significantly exceeded expectations, and included a return to our targeted gross margin and operating expense model parameters,” said John Coyne, president and chief executive officer.

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