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Western Digital plummets after missing on revenue

Key Points
  • The computer company reported $5.03 billion on revenue, while analysts predicted $5.14 billion.
  • The company matched earnings per share however, coming in at $3.04 a share. 
  • Shares are down 35.7 percent year-to-date. 
The hard drive assembly line at Western Digital.
Shepard Sherbell | Corbis | Getty Images

Western Digital shares fell as much as 10 percent during after-hours trading on Thursday after the company missed analysts' expectations on revenue.

The computer company reported $5.03 billion on revenue, while analysts predicted $5.14 billion. The company matched earnings per share however, coming in at $3.04 a share.

In August, analyst Karl Ackerman lowered Western Digital's price target to $70 from $100 and the firm Cowen downgraded it to market perform from outperform, as competitors slash memory hard drive prices.

Shares are down 35.7 percent year-to-date.

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Western Digital will suffer from a massive price war in the storage market: Cowen

Key Points
  • Cowen lowers its rating to market perform from outperform for Western Digital shares, predicting the storage provider will report profits below expectations next year.
  • “Our decision rests on our field work that indicates substantial, unabated competitive pricing tactics by WDC, Toshiba and to a lesser extent INTC to gain share of enterprise and client SSDs [solid-state drives], " the firm's analyst Karl Ackerman says.