Summary:
- Western Digital Corporation (WDC) rose by 12% at one point, after posting earnings even after missing Wall Street expectations.
- The stock’s market cycles and recent momentum provide positive indicators will likely push it even higher in the near term.
The data storage producer reported earnings of $1.45 per share and revenue of $4.23 billion, below analyst estimates of $1.50 and $4.26 billion. With respect to the current quarter, management expects earnings of $0.40-0.60 and revenue of $3.60-3.80, which were below expectations.
Nonetheless, CEO Steve Milligan sees revenue improving in the second half of 2019 and announced the firm’s intention to cut costs, “We are taking actions to right-size our factory production while ensuring we are maintaining our competitiveness and technology leadership.”
Our analysis of the stock’s market cycles shows that it is in the rising phase of its current cycle. However, today’s move brought it to resistance, as shown on the weekly chart on the left. On the right, the gap up and positive momentum suggest near term higher prices, with a target of $48-51.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
