Western Digital Boosts Targets

SAN FRANCISCO -- Strong demand for hard disk drives led Western Digital (WDC Quote) to ratchet up its first-quarter sales and profit targets, following a similar move by industry leader Seagate Technology (STX Quote).

After the markets closed Monday, Western Digital said it expects earnings of 61 cents to 65 cents a share for the quarter ending this month, excluding charges from its recent acquisition of Komag. That estimate towers above the storage-device maker's previous forecast of 43 cents to 47 cents, as well as analysts' consensus estimate of 51 cents.

Western Digital also said its gross margin should hit 17.5%, rebounding from lows in previous quarters and above its prior estimate of 15.5%. The change reflects firmer pricing power after years of price wars with Seagate and Asian rivals like Hitachi (HIT Quote). ...