Western Digital Shares Fall 6.76% After 2Q Loss, 3Q View

Dow Jones2023-02-01

Shares of Western Digital Corp. declined 6.76% to $40.98 in after-hours trading on Tuesday after the company swung to a second-quarter loss and provided a third-quarter outlook below Street views.

The developer of data storage devices and solutions swung to a loss of $446 million, or $1.40 per share, compared with a profit of $564 million, or $1.79 per share, a year ago. Adjusted losses came to 42 cents per share. Analysts polled by FactSet were expecting adjusted losses of 15 cents per share.

Revenue fell to $3.11 billion from $4.83 billion the year prior. Analysts were looking for $2.98 billion.

Chief Executive David Goeckeler said the company faced a "challenging flash price environment and continued cloud inventory digestion" in the period.

For the third quarter, the company guided for revenue between $2.60 billion to $2.80 billion. Analysts expected $2.96 billion.

Western Digital also guided for adjusted per-share loss of between $1.70 to $1.40. Analysts expected an adjusted loss of 37 cents.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment