Could the market for personal computers be turning around? After a year of flagging demand Western Digital (WDC) CEO Steve Milligan said the rebounding PC market helped the Irvine, Calif.-based data storage manufacturer top earnings forecasts for its fiscal first quarter ended Sept. 30.
Western Digital shares were climbing about 5% in premarket trading after posting earnings per share of about $1.18 for the quarter, topping consensus estimates by about 13%, while sales of $4.71 billion also beat forecasts by 4%. "Demand for both hard drive and flash-based products was strong across all customer categories, driven by cloud and mobile applications, as well as better-than-expected PC market trends," Milligan said on an earnings call with analysts.
Tesla Motors (TSLA) shares were also climbing before the opening bell by about 4% after booking its first profit in the last two years, $111 million vs. expectations for an $84 million loss for the third quarter. Tesla said in a statement that new product launches helped drive the company's sales growth, and that self-driving hardware is setting Tesla up for accelerated growth in the new markets.
"Our energy storage products are gaining increased market acceptance, firmly establishing Tesla as a leader in energy storage solutions, and surpassing our competitors in the breadth and scope of our offerings across residential, commercial, and utility-scale storage markets," the company said in a statement.
Meanwhile, Community Health Systems (CYH) shares were plunging about 32% after the hospital chain lowered its annual earnings guidance to $2.2 billion to $2.28 billion from a previous $2.4 billion to $2.55 billion, noting it may have to sell some of its facilities to curb costs.
Groupon (GRPN) stock was also down about 10% in premarket trading after the Chicago-based e-commerce firm announced plans to acquire competitor LivingSocial, in a transaction for an undisclosed amount that will be subject to regulatory approval.