Tuesday, December 6, 2011

Today's Major Market Move: Western Digital (WDC) Up over 22% in Past Week

US equity markets, as did many equity markets around the world, from the proposed formation of a plan by the Europeans to deal with their debt crisis. The S&P 500 gained 8.6% over the past week and the best performing stock within the index was Western Digital Corporation (ticker: WDC) which rose 22.3%.

Click here to go to the live table.

Despite last week's move, WDC is still down slightly for the year at -6%. The company's supply chain is being affected by the flooding in Thailand and the company has guided earnings lower for the next 3 quarters. The stock price immediately took a hit at the start of the flooding:
Click here to go to the live chart.

This recent boost was the result of positive news regarding their acquisition of Global Storage Technology, a Hitachi subsidiary. WDC passed a regulatory hurdle when the EU gave approval for the takeover. Overall, I'm still surprised that the stock has held up as well as it has given the effect of the Thailand disaster. Here's the chart of estimated and actual earnings from calendar quarter 3 2008 up to calendar quarter 1 2014:
Click here to go to the live chart.

WDC is expected to have negative earnings for the next 3 quarters and then even after earnings recover in calendar q3 2012,  earnings are projected to stay flat up until calendar q1 2014. Here's the same chart but in terms of % change with stock price added in:
Click here to go to the live chart.

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