Wedbush expects Seagate and Western Digital to beat earnings forecasts

what happened

Wedbush analyst Matt Bryson, as reported by Seeking Alpha, says Seagate and Western Digital are the best positioned among hard disk drive makers to exceed estimates in their upcoming quarterly results. In a report published on Wednesday, he noted that demand is running well ahead of output and that no supply chain shocks are visible, so the bars the companies set should be easy to clear.

Wedbush kept Outperform ratings on both stocks, with a $1,000 price target for Seagate and $650 for Western Digital. For Seagate, the firm expects revenue and non-GAAP EPS above guidance of $4.1 billion plus or minus $100 million and $7.30 plus or minus $0.20, and above consensus of $4.13 billion and $7.39, with most of the upside likely coming from margins. Its 58.3% gross margin estimate sits above the 57.4% consensus. Wedbush also expects Western Digital to beat its guidance and consensus.

why it matters

Seagate holds the shortest duration in its long-term agreements, so it would be the first to reprice if storage supply falls short. Western Digital, according to Wedbush, had been slower to reprice non-LTA deals but shifted strategy to close the gap. Western Digital is due to report fiscal Q1 2027 results on Oct. 22 with consensus adjusted EPS of $4.10 on $4.15 billion revenue. Seagate reports Oct. 27 with consensus of $7.40 on $4.14 billion.

market impact

Seagate, WDC: strong demand expectations support sentiment ahead of earnings

tags

instruments