Western Digital Shares Tumble as Q4 Revenue Misses and Outlook Disappoints

Western Digital falls 4% on Q4 revenue miss, guidance trails estimates By Investing.com

SAN JOSE, Calif. - Western Digital Corp. (NASDAQ:WDC) shares tumbled 4% as the company's fourth-quarter revenue fell short of Wall Street expectations, and its guidance for the first quarter of 2025 came in below analyst projections. The data storage giant reported fourth-quarter earnings of $1.44 per share, surpassing the consensus estimate of $1.16. However, revenue for the quarter was $3.76 billion, slightly missing the analyst target of $3.74 billion. Compared to the same period last year, revenue surged 41% from $2.672 billion, indicating significant year-over-year (YoY) growth. Looking forward, Western Digital anticipates first-quarter 2025 earnings to range between $1.55 and $1.85 per share, with the midpoint below the consensus estimate of $1.76. The company also forecasts revenue between $4 billion and $4.2 billion for the upcoming quarter, which trails the analyst consensus of $4.23 billion. David Goeckeler, Western Digital CEO, commented on the results, highlighting the company's diversified portfolio and strategic roadmap that align with the recovery across end markets. "We are structurally improving through-cycle profitability for both Flash and HDD," said Goeckeler. He also emphasized the transformative period driven by the AI Data Cycle, which is expected to increase the demand for storage solutions. Western Digital's cloud revenue showed a robust increase of 21% quarter-over-quarter (QoQ), while client revenue grew by 3%. However, consumer revenue experienced a 7% decline QoQ. For the fiscal year 2024, the company reported a total revenue of $13 billion, a 6% increase YoY. Western Digital's financial health remains solid, ending the quarter with an operating cash inflow of $366 million and $1.88 billion in total cash and cash equivalents. The company's strategic focus and technology leadership position it to capitalize on growth opportunities in the evolving digital landscape, despite the current market reaction to its financial guidance.

Western Digital Shares Tumble on Weak Outlook By Investing.com

SAN JOSE, Calif. - Western Digital Corp. (NASDAQ:WDC) reported its fiscal fourth quarter earnings, surpassing analyst expectations on earnings per share (EPS) but providing a weaker-than-expected outlook for the first quarter of 2025, which sent shares down 4% in response to the news. For the fourth quarter, the company posted an adjusted EPS of $1.44, beating the analyst estimate of $1.16. Revenue reached $3.76 billion, slightly above the consensus estimate of $3.74 billion. The company's cloud revenue saw a notable increase of 21% quarter over quarter (QoQ), while its client revenue grew by 3%. However, consumer revenue experienced a decline of 7% QoQ. Despite the mixed performance in different segments, the overall quarterly revenue represented a sequential rise of 9%. Western Digital's CEO, David Goeckeler, attributed the quarter's success to the company's diversified portfolio and strategic initiatives. "Our fourth quarter and fiscal year 2024 results are reflective of the diverse and innovative portfolio we have developed in alignment with our strategic roadmap," said Goeckeler. He also highlighted the transformative period within the industry driven by the AI Data Cycle, which he believes will increase the demand for storage. Looking ahead, the company forecasted first quarter 2025 revenue to be between $4.00 billion and $4.20 billion, with a midpoint slightly below the analyst consensus of $4.23 billion. The guidance for adjusted EPS is set at a range of $1.55 to $1.85, with the midpoint falling short of the consensus estimate of $1.76. The weaker outlook is the primary driver behind the stock's decline, as investors adjust their expectations following the company's projections. Western Digital's full fiscal year 2024 saw a GAAP EPS of -$1.72 and an adjusted EPS of -$0.20. The company's results and guidance reflect the challenges and opportunities in the evolving tech landscape, with a particular focus on the growth potential in data storage driven by emerging technologies.

Western Digital Q4 results surpass estimates as Cloud revenue grows 21%

Western Digital (NASDAQ:WDC) fourth quarter fiscal 2024 results surpassed estimates as Cloud segment revenue increased more than 20% quarter over quarter, the company reported Wednesday after markets closed. However, the company's expectations for the quarter in progress fell slightly short of stimates. For the quarter ended June 30, Western Digital reported non-GAAP earnings per share of $1.44 versus the consensus estimate of $1.17. The data storage company reported total revenue of $3.76B versus the estimate of $3.74B. The Cloud revenue segment increased 21% quarter over quarter, the company reported, as Cloud represents about 50% of the revenue total. Looking ahead, Western Digital expects earnings per share ranging from $1.55 to $1.85 and revenue of $4B to $4.2B for the first quarter of fiscal 2025. Analysts estimates called for earnings per share of $1.75 on revenue of $4.24B "Together, with the structural changes we have made to strengthen our operations, we are benefitting from the broad recovery we are seeing across our end markets and structurally improving through-cycle profitability for both Flash and HDD," said Western Digital CEO David Goeckeler. "The emergence of the AI Data Cycle marks a transformational period within our industry that will drive fundamental shifts across our end markets, increasing the need for storage and creating new demand drivers," he added. Rival data storage company Seagate Technology (STX) beat both fourth quarter and outlook estimates when it reported last week.

Western Digital sees first-quarter revenue below estimates on weak demand for data storage products

July 31 (Reuters) - Western Digital Corp forecast first-quarter revenue below Wall Street estimates on Wednesday, signaling a slower-than-expected recovery in the company's data storage products. The AI boom has helped some memory chipmakers such as Micron technology in the middle of a steep industry downturn, but the demand for chips used in conventional data centers continues to fall, hurting memory chip companies like WDC. Shares of the company were down 4.2% in extended trading. The data storage products maker expects first-quarter revenue in the range $4 billion to $4.20 billion, compared with analysts' estimates of $4.22 billion, according to LSEG data. It sees adjusted earnings per share in the range of $1.55 to $1.85, compared with estimates of $1.74. Western Digital's fourth-quarter revenue stood at $3.76 billion beating analysts' average expectations of $3.74 billion. The adjusted profit per share came in at 88 cents, compared with estimates of $1.17. Revenue of the company's flash memory business which is expected to operate separately from its traditional hard disk drive unit by the second half of 2024, rose nearly 28% to $1.76 billion. Rival Seagate Technology forecast upbeat revenue for its first quarter last week, driven by increased demand for memory chips from personal computing and data center clients. (Reporting by Juby Babu in Mexico City and Priyanka.G; Editing by Mohammed Safi Shamsi)