Western Digital Shares Rally After Q1 Results: EPS Beat, Revenues Miss

Western Digital Corp. WDC reported its first-quarter results after Thursday's closing bell. Here's a look at the key figures from the quarter.  

The Details: Western Digital reported quarterly earnings of $1.78 per share, which beat the analyst consensus estimate of $1.73. Quarterly revenue came in at $4.09 billion, which missed the analyst consensus estimate of $4.12 billion and represents an increase over sales of $2.75 billion from the same period last year.

• Cloud revenue increased 17% sequentially and represented 54% of total revenue. The increases were driven by higher nearline shipments in HDD and enterprise SSD bit shipments to data center customers.
• Client represented 29% of total revenue. Compared to last quarter, Flash bit shipment growth in gaming and mobile was offset by a decline in PC OEM, while HDD revenue was flat. Year-over-year, an increase in Flash revenue was primarily due to higher ASPs as bit shipments declined, and was partially offset by lower HDD revenue.
• Consumer represented 17% of total revenue. Sequentially, a slight growth in HDD offset a decline in Flash driven by softer consumer demand. Year-over-year, the decrease was due to lower Flash and HDD bit shipments partially offset by improved pricing in both Flash and HDD.

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“Western Digital’s performance in the fiscal first quarter demonstrates our commitment to operational excellence and disciplined capital investment as our focus on lasting quality and reliability, driven by industry-leading innovation and a diversified portfolio, has allowed us to target the most attractive end markets to improve profitability,” said David Goeckeler, Western Digital CEO.

“With the continued proliferation of the AI Data Cycle, our Flash and HDD product portfolios are well-positioned to capitalize on significant opportunities as adoption continues to grow,” Goeckeler added.

Outlook: Western Digital expects second-quarter revenue in a range of $4.2 billion to $4.4 billion, versus the $4.35 billion estimate, and adjusted earnings per share between $1.75 and $2.05, versus the $1.95 estimate.

WDC Price Action: According to Benzinga Pro, Western Digital shares are up 8.19% after-hours at $71.75 at the time of publication Thursday.

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Photo: Courtesy of Western Digital Corporation