NEW YORK (TheStreet) -- Western Digital (WDC) - Get Report stock is falling 0.25% to $44.27 in early morning trading on Friday after the Irvine, CA-based data storage provider revised its fiscal 2016 fourth quarter earnings guidance, which fell below estimates, to reflect the recent acquisition of SanDisk.

For the quarter ending July 1, the company expects to report earnings between 65 cents and 70 cents per share, but analysts were expecting 90 cents per share for the quarter. The new guidance is below the prior earnings outlook of $1 to $1.10 per share.

Revenue outlook was raised to $3.35 billion to $3.45 billion from the previous guidance of $2.6 billion to $2.7 billion. Wall Street is anticipating $3.35 billion in revenue.

"While the WDC call didn't provide any long-term targets for the combined entity, it did take away the risk of $2.50-$3.50 annualized EPS fear that some investors had," RBC Capital Markets analysts said in a note this morning.

RBC analysts expect earnings to reach $5.04 per share for the 2016 fiscal year and called the new guidance "a step in the right direction" and "conservative enough to drive upside."

Separately, Western Digital has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins, which offsets generally disappointing stock performance, feeble earnings per share growth and deteriorating net income.

You can view the full analysis from the report here: WDC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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