Here's why Western Digital stock plunged 11% despite strong earnings

Western Digital shares fell as much as 10.8% in after-hours despite an earnings beat. Adjusted EPS rose to $3.56 vs $1.70 a year earlier, topping the $3.31 analyst forecast, but the stock still declined 5.4% in regular trading. The reaction suggests investors were disappointed by something beyond headline EPS despite the upside.

Analysis

Western Digital shares fell as much as 10.8% in after-hours despite an earnings beat. Adjusted EPS rose to $3.56 vs $1.70 a year earlier, topping the $3.31 analyst forecast, but the stock still declined 5.4% in regular trading. The reaction suggests investors were disappointed by something beyond headline EPS despite the upside.