Western Digital Corp.(NASDAQ:WDC) stunned analysts with better-than-expected earnings in the fourth quarter to June gaining from a recent acquisition and quick recovery from disruption to its Thailand operations from flooding late last year.
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The California-based firm that makes hard drives, on Wednesday reported a five-fold jump in net income to $745 million in the June quarter, up from $158 million in the year-ago quarter. Revenues were almost double at $4.75 billion compared to $2.40 billion a year earlier. Adjusted earnings for the quarter, which excluded cost of restructuring, came in at $3.35 a share, while analysts had polled earnings at $2.47 a share and revenues at $4.25 billion. Western Digital Chief Executive John Coyne, in an earnings call with analysts forecast adjusted earnings at $10 a share for the current full year, above the $8.06 that analysts are expecting.
Shares of WDC soared 25% to $40.59.
The shares of Zynga Inc(NASDAQ:ZNGA) tumbled to another new low in opening session with stock plunged a whopping 40.33% to $3.3 as the game provider reported much lower than anticipated second quarter earnings and revenue. If, that’s not enough, here is more surprise – The company trimmed its earnings outlook.
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The company which is popular for games like "CityVille" and "FarmVille" said that it lost $22.8 million, or 3 cents a share in the latest quarter, reversing a year ago profits of $1.4 million. On an adjusted basis, the company would have earned a penny, well below analysts’ target of 5 cents a share. Revenue came in at $332 million, up 19% year over year, while missing analysts’ estimates of $342.8 million.
Shares of ZNGA have been under severe selling pressure since early March and had lost about 80% from its recent peaks as investors are concerned about the company’s reducing users. The company generated its 100% revenue from games played on Facebook’s platform. However, the recent suggest that more users have been shifting their uses to mobile from desktop, which has left limited room for ZNGA to grow.
The company went public in December, 2011 at an IPO price of $10, the stock quickly jumped to new high of $15.91 by early March. Since then, the stock never recovered and showing continuous selling pressure.