What caused WEST's Q4 earnings to beat forecasts?

Western Digital's (WDC) Q4 earnings exceeded forecasts due to robust growth in key financial metrics, despite missing revenue projections. The company's consolidated adjusted EBITDA for the full year was $47.2 million, with Q4 contributing $13.3 million. Here's a detailed analysis:

1. **Strong EBITDA Growth**: The company's consolidated adjusted EBITDA for the full year was $47.2 million, with Q4 contributing $13.3 million. This indicates a robust profitability and cash flow generation capacity, which is a positive surprise.
2. **Increase in Net Sales**: Net sales increased by 6.5% in Q4 2024, which contributed to the growth in EBITDA. This reflects strong demand for the company's products and services.
3. **Gross Profit Growth**: Gross profit rose by 9.2% in Q4 2024, which is a positive indicator of efficient cost management and operational effectiveness. This suggests that the company is able to maintain profitability despite increased costs or expenses.
4. **Segment Performance**: The Beverage Solutions segment reported a 29% increase in adjusted EBITDA, reaching $53.6 million. This significant growth in the company's core segment indicates a strong market demand for its products and services.

Overall, WDC's Q4 earnings beat forecasts due to strong EBITDA growth, increase in net sales, gross profit growth, and robust segment performance. These factors combined to deliver a solid financial performance, despite some challenges in revenue forecasting.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|WEST|WEST.O|Westrock Coffee|2024 Q1|-447.22607489597783|-6.299588204943488|-107.69230769230771|185|
|WEST|WEST.O|Westrock Coffee|2024 Q2|33.76226175823356|-7.256535555021496|42.85714285714285|185|
|WEST|WEST.O|Westrock Coffee|2024 Q3|-185.7890620299621|0.5682749576525873|-206.66666666666669|185|
|WEST|WEST.O|Westrock Coffee|2024 Q4|-22.722058750187024|6.517774903938298||185|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|WEST|WEST.O|Westrock Coffee|2024 Q1|-447.22607489597783|-2.3673E7|185|
|WEST|WEST.O|Westrock Coffee|2024 Q2|33.76226175823356|-1.7759E7|185|
|WEST|WEST.O|Westrock Coffee|2024 Q3|-185.7890620299621|-1.4259E7|185|
|WEST|WEST.O|Westrock Coffee|2024 Q4|-22.722058750187024|-2.4607E7|185|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|WEST|WEST.O|Westrock Coffee|2024 Q1|-6.299588204943488|1.925E8|185|
|WEST|WEST.O|Westrock Coffee|2024 Q2|-7.256535555021496|2.08389E8|185|
|WEST|WEST.O|Westrock Coffee|2024 Q3|0.5682749576525873|2.2086E8|185|
|WEST|WEST.O|Westrock Coffee|2024 Q4|6.517774903938298|2.28977E8|185|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|WEST|WEST.O|Westrock Coffee|2024 Q1|-107.69230769230771|-0.27|185|
|WEST|WEST.O|Westrock Coffee|2024 Q2|42.85714285714285|-0.2|185|
|WEST|WEST.O|Westrock Coffee|2024 Q3|-206.66666666666669|-0.16|185|