NEW YORK (TheStreet) -- Western Digital (WDC) - Get Western Digital Corporation Report stock is retreating 13.14% to $40.01 on heavy trading volume on Friday afternoon after the data storage company reported lower-than-expected financial results for the fiscal 2016 third quarter.
After yesterday's market close, the Irvine, CA-based company posted earnings of $1.21 per share for the quarter ended April 1, missing estimates of $1.29 per share.
Revenue dropped 20.6% year over year to $2.82 billion for the latest quarter, falling short of estimates that called for $2.86 billion in revenue because of weak hard disk drive sales.
Additionally, Western Digital's stock is being pressured by its disappointing fiscal 2016 fourth quarter outlook.
The company set its earnings guidance at $1 to $1.10 per share for the fourth quarter, below estimates of $1.34 per share. Revenue is expected to be between $2.6 billion and $2.7 billion, while analysts had estimated $2.9 billion in revenue.
So far today, 11.04 million shares of Western Digital have been traded, nearly twice its average daily volume of 5.67 million shares.
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, attractive valuation levels and good cash flow from operations, 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
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