Shares of semiconductor firm Western Digital Corp. (WDC) - Get Report were sinking more than 4% during after-hours trading on Monday despite the company saying its profit for the fiscal fourth quarter will be higher.
The revised guidance is based on a 1-point increase in its gross profit outlook driven by the sales of flash memory chips and enterprise-class hard drives.
San Jose, Calif.-based Western Digital now expects revenue of $4.8 billion, gross profit margin equivalent to 41% of sales, and earnings per share of $2.85.
The company's gross margin is a point higher, and the prior EPS forecast was $2.55 to $2.65.
Analysts polled by FactSet expect fourth-quarter earnings of $2.65 per share on revenue of $4.8 billion.
The revised profit outlook is due to "continued good execution and strong demand for the company's broad portfolio of storage products," the company said. "Particularly for flash-based devices and solutions and the 10 terabyte helium capacity hard drives."
Western Digital also reiterated an outlook for $12 per share in profit for this calendar year.
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Western Digital and Ford are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells WDC or F ? Learn more now.
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