Storage stocks got a big boost Wednesday, when hard-drive maker
raised its outlook for the December quarter and Goldman Sachs raised its estimates for
In recent trading, Seagate was up $1.02, or 6.8%, to $16; Western Digital was up 50 cents, or 5.1%, to $10.27 a share; and
was up 36 cents, or 9.4%, to $4.18.
In a filing with the
Securities and Exchange Commission
, Western Digital said it expects EPS of 17 cents to 19 cents on revenue ranging from $885 million to $915 million for its second quarter ending Dec. 31.
In October, Western Digital said it expected sales of $830 million to $865 million, but didn't give earnings guidance. Analysts surveyed by Thomson First Call estimated Western Digital would earn 15 cents a share on sales of $849 million.
In its filing, the company said it was shipping more units to personal computer makers than it expected, while inventories were somewhat lower than expected. December pricing, the company said, will have much to do with the quarter's financial performance.
Separately, Goldman Sachs analyst Laura Conigliaro said in a note Wednesday that she expects Seagate to sound a positive note when it gives its midquarter update on Dec. 7. She said that the combination of share gains in the enterprise and desktop markets, a better pricing environment in enterprise, and new products rolling out into production in the March quarter should provide a lift for revenue in the seasonally strong December quarter and carry into 2005.
Conigliaro now expects the company to earn a 15 cents a share profit on sales of $1.7 billion; other analysts are expecting a profit of 13 cents a share on sales of $1.5 billion in the second quarter.