KeyBanc analyst Weston Twigg noted that inSpectrum released its November monthly memory contract pricing. 8Gb DDR4 contract pricing was down 4.8% month-over-month, while NAND contract pricing for 128Gb TLC was down 4.7% month-over-month, which he said was consistent with his expectations. Twigg added that he views the DRAM market as likely healthier and more profitable than NAND over the long run. Twigg has an Overweight rating on Micron (MU) and also mentioned Seagate (STX) and Western Digital (WDC) in the report, though he does not cover the latter two stocks.

Sees Q4 revenue $3.6B-$3.8B, consensus $3.69B.

Reports Q3 GAAP EPS 34c. Reports Q3 revenue $3.46B, consensus $3.36B. "As evidenced by our excellent third quarter results, Western Digital continues improving through-cycle profitability and dampening business cycles by leveraging our strategy of developing a diversified portfolio of industry-leading products across a broad range of end markets," said David Goeckeler, Western Digital CEO. "We are in the early innings of unlocking the full potential of this company, and as industry supply and demand dynamics continue to improve, we will remain disciplined around our capital spending and focused on driving innovation and efficiency across our businesses. We are confident in our strategy and the actions we have taken to-date, which successfully position us to capitalize on the promising growth prospects that lie ahead."

Pre-earnings options volume in Western Digital is 1.4x normal with calls leading puts 7:5. Implied volatility suggests the market is anticipating a move near 6.2%, or $4.32, after results are released. Median move over the past eight quarters is 2.1%.

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