Why Western Digital (WDC) Shares Are Falling Today - Western Digital (NASDAQ:WDC)

Western Digital Corp WDC reported fourth-quarter FY22 revenue growth of 8% year-on-year to $4.53 billion, beating the consensus of $4.49 billion.
Non-GAAP EPS of $1.78 beat the consensus of $1.68.
Cloud revenue increased 5% Y/Y to $2.1 billion, Client revenue declined 14% Y/Y to $1.64 billion, and Consumer revenue declined 23% Y/Y to $793 million.
WDC said on their conference call that consumer spending has softened, which has impacted both retail flash and Hdd demand.
The non-GAAP gross margin expanded 60 bps to 32.3%.
It generated $295 million in operating cash flow and held $2.33 billion in cash and equivalents.
Outlook: WDC sees Q1 FY23 revenue of $3.60 billion - $3.80 billion below the consensus of $4.74 billion.
It sees non-GAAP EPS of $0.35 - $0.65 below the consensus of $1.96.
WDC expects inventory correction to impact Q1 performance and return to market demand in the remainder of the fiscal year.
Price Action: WDC shares traded lower by 5.21% at $47.31 on the last check Friday.

Western Digital Shares Drop On Dismal Q1 Outlook; Beats Q4 Aided By Mixed Segment Performance