Western Digital stock slides on weak guidance

Western Digital (WDC.US)— stock plunged over 16% after the company posted its fourth-quarter financial results. The data storage company’s reported earnings of $1.23 per share on revenues of $4.29 billion, while analysts polled by Refinitiv had expected earnings of $1.22 per share on revenues of $4.34 billion.

However company's next quarter forecast weighed on investors moods. Western Digital is expecting a year-over-year decline in sales with guidance for adjusted earnings of 45 cents to 65 cents a share on sales of $3.7 billion to $3.9 billion, while market expected adjusted earnings of $1.35 a share on sales of $4.36 billion.

Western Digital (WDC.US) - stock price is currently testing major resistance at $37.56 per share. Should a break below occur, downward move may accelerate. Next support is located at $27.03. However if bulls regain control, local resistance at $40.60 per share may be at risk. This level is additionally strengthen by 100 MA (green line). Source: xStation5

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