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NEW YORK (TheStreet) -- Shares of Western Digital (WDC) are gaining by 10.76% to $50.68 in mid-morning trading on Friday, after the data storage solutions company reported better than expected earnings results for the fiscal 2016 second quarter.

The company, which is in the process of acquiring flash memory chip maker SanDisk (SNDK), reported adjusted earnings of $2.26 per share. Analysts surveyed by Thomson Reuters had been expecting earnings of $1.54 per share.

Revenue for the quarter declined year over year and fell short of analysts' expectations. Western Digital reported revenue of $3.3 billion, just below the $3.34 billion analysts were looking for.

The company reported its latest financial results after the market close on Thursday afternoon. Shares had fallen by 1.5% in after-hours trading as a result.

Western Digital noted that it had to deal with lower than expected available market for hard drives during the quarter.

Separately, TheStreet Ratings has set a "hold" rating and score of C+ on Western Digital stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

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 articles's author. TheStreet Ratings has this to say about the recommendation:

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

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