Sandisk, Western Digital Slump as Guidance Disappoints Lofty Expectations
WDC has more than doubled off its 52-week low of $73.14.
Summary
Both stocks are falling in early trading despite blowout Q4 results reported yesterday. Sandisk's Q1 guidance came in slightly below analyst expectations, with the midpoint of its adjusted EPS range ($45) missing the $44.72 consensus and revenue midpoint ($10.55B) below the $10.82B estimate. Western Digital's guidance was roughly in line, but the market is punishing both as investors had priced in even stronger outlooks. This follows yesterday's earnings release showing 44% YoY revenue growth and significant margin expansion. The selloff highlights how elevated valuations leave no room for even minor guidance shortfalls.
At the time of this announcement, WDC was trading at $464.59 on NASDAQ in the Technology sector, with a market capitalization of approximately $160.1B. The 52-week trading range was $73.14 to $799.87. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.