Shares of disk drive and NAND flash reminiscence chip maker Western Digital rose by 3% in late buying and selling, after the company reported fiscal first-quarter income and revenue that topped analysts’ expectations, and forecast income this quarter simply barely forward of consensus.
The quarter noticed sturdy shopper gross sales, however a fall-off in information heart and enterprise demand.
CEO David Goeckeler stated he was “happy” with the outcomes. Western is “nonetheless managing by way of macro uncertainty,” stated Goeckeler. However he cited sturdy demand in retail gross sales of drives, “pushed by favorable macro and market dynamics, in addition to the model recognition of our merchandise.”
Goeckeler stated the corporate stays targeted “on the huge market alternative for information storage expertise that stems from the continuing enlargement of cloud infrastructure linked to clever endpoints and powered by high-performance networks.”
Western’s income within the three months resulted in September declined by 3%, yr over yr, to $3.92 billion, yielding EPS of 65 cents. Analyst had been modeling $3.83 billion and 55 cents per share.
For the present quarter, Western foresees income in a variety of $3.75 billion to $3.95 billion, which, on the mid-point, is increased than consensus for $3.83 billion. EPS this quarter is seen in a variety of 40 cents to 60 cents, versus consensus for 64 cents.
Gross sales of consumer units, Western’s designation for retail drive merchandise, jumped 20%. Conversely, drives and chips bought into information facilities dropped by 26%.
Shopper units benefitted from do business from home, stated Western:
In Shopper Gadgets, Western Digital’s business main consumer SSD options for pocket book and desktops benefitted from the acceleration of do business from home and distant studying traits. Gaming skilled vital development as upcoming recreation consoles transition from exhausting drive-based storage options to flash, powering a extra real-time, immersive gaming expertise. As well as, cellular income greater than doubled, pushed by current 5G telephone launches and a broadening of finish prospects inside China.
Against this, shopping for habits within the quarter have harm information heart gross sales:
In Information Middle Gadgets & Options, each Capability Enterprise exhausting drive and Enterprise SSD (eSSD) demand have been negatively impacted by shifts in buyer ordering patterns. Essential product transitions in exhausting drive and flash-based storage options additionally impacted demand traits as prospects are nonetheless ramping up on these newer merchandise.
Western inventory rose 3% in late trading to $40.