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

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.