Core Insights - Western Digital (WDC) reported revenue of $4.29 billion for the quarter ended December 2024, marking a year-over-year increase of 41.3% and exceeding the Zacks Consensus Estimate by 0.81% [1] - The company achieved an EPS of $1.77, a significant improvement from -$0.69 a year ago, with an EPS surprise of 1.14% over the consensus estimate of $1.75 [1] Financial Performance Metrics - Total HDD unit shipments were 13.5 million, below the two-analyst average estimate of 14.21 million [4] - The average selling price (ASP) for HDD was $172, surpassing the $166.25 average estimate [4] - Net revenue from Flash products was $1.88 billion, matching the average estimate [4] - Net revenue from HDD reached $2.41 billion, exceeding the $2.36 billion average estimate, representing a year-over-year increase of 76.2% [4] - Gross profit from HDD was $929 million, above the average estimate of $898.26 million [4] - Gross profit from Flash was $609 million, falling short of the average estimate of $671.47 million [4] Stock Performance - Shares of Western Digital have returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Western Digital (WDC) came out with quarterly earnings of $1.77 per share, beating the Zacks Consensus Estimate of $1.75 per share. This compares to loss of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.14%. A quarter ago, it was expected that this maker of hard drives for businesses and personal computers would post earnings of $1.74 per share when it actually produced earnings of $1.78, delivering a surprise of 2.3 ...

Exhibit 99.1 Western Digital Reports Fiscal Second Quarter 2025 Financial Results News Summary ($ in millions, except per share amounts) | | GAAP | | | | Non-GAAP | | | --- | --- | --- | --- | --- | --- | --- | | | Q2 2025 | Q1 2025 | Q/Q | Q2 2025 | Q1 2025 | Q/Q | | Revenue | $4,285 | $4,095 | up 5% | $4,285 | $4,095 | up 5% | | Gross Margin | 35.4% | 37.9% | down 2.5 ppt | 35.9% | 38.5% | down 2.6 ppt | | Operating Expenses | $664 | $809 | down 18% | $674 | $691 | down 2% | | Operating Income | $852 | $7 ...

Western Digital Coproration (WDC) is set to report fiscal second-quarter 2025 results on Jan. 29.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, which moved down 8.4% in the past 60 days. WDC reported a loss per share of 69 cents in the prior-year quarter.The consensus estimate for revenues is currently pegged at $4.26 billion, indicating an increase of 40.4% from the prior-year quarter’s figure.  The company's ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Western Digital, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Western Digital is expected to report quarterly earnings of $1.75 per share, reflecting a year-over-year increase of +353.6%, with revenues projected at $4.28 billion, up 41.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 8.27% over the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate is lower than the consensus estimate, resulting in an Earnings ESP of -0.19%, suggesting a bearish outlook [10][11]. Historical Performance - Western Digital has beaten consensus EPS estimates in the last four quarters, with a recent surprise of +2.30% when it reported earnings of $1.78 per share against an expectation of $1.74 [12][13]. Investment Considerations - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 4 makes it challenging to predict a positive outcome for the upcoming earnings report [11][16].

Core Viewpoint - Western Digital Corporation (WDC) has announced preliminary financial results for Q2 of fiscal 2025, indicating a challenging pricing environment in its flash business, which is expected to impact earnings per share [1][2]. Financial Performance - Revenues for Q2 are projected to be at the mid-point of the guidance range of $4.20 billion to $4.40 billion [2]. - Non-GAAP diluted earnings per share (EPS) are anticipated to be at the lower end of the previous guidance of $1.75 to $2.05 [2]. - In the last reported quarter, Flash revenues increased by 21% year-over-year and grew 7% sequentially, driven by demand for enterprise SSD products [3]. Market Position and Competition - Western Digital is a leading provider of HDD and Flash storage solutions, serving various consumer electronic devices [3]. - The company faces significant competition from major players like Seagate, Hitachi, Samsung, and Intel, as well as SSD specialists like Micron, which may lead to pricing pressures [5]. - Customer concentration is a concern, with the top 10 customers accounting for 39% of net revenues for fiscal 2024 [4]. Financial Health - As of September 27, 2024, Western Digital had cash and cash equivalents of $1.71 billion and long-term debt of $7.4 billion, indicating a leveraged balance sheet [4]. Stock Performance - Western Digital currently holds a Zacks Rank of 5 (Strong Sell), with shares declining by 11% over the past six months, compared to a 24.7% decline in the industry [6].

Core Insights - Western Digital Corp has been rerated by analysts following updates on its fourth-quarter results and the announcement of its CFO's retirement [1][4] - The company expects second-quarter fiscal 2025 revenues to fall within the range of $4.20 billion to $4.40 billion, with adjusted EPS anticipated at the lower end of $1.75 to $2.05 due to a challenging pricing environment in NAND [3][8] Company Updates - CFO Wissam Jabre will retire effective February 28, with plans for a new CFO search post-separation of the Flash and HDD businesses [1][4] - Jabre is expected to remain as CFO of the HDD business after the split, with Irving Tan as CEO [2] Financial Performance - The fourth-quarter results indicate revenue at the mid-point of guidance and EPS at the low end of the previous range [4] - Analysts project second-quarter revenue of approximately $4.18 billion and EPS of $1.72, with some estimates as high as $4.25 billion and $1.75 [7][13] Market Conditions - The pricing environment for NAND is more challenging than previously expected, attributed to elevated inventory levels and sluggish demand in various sectors [9][13] - Analysts expect a recovery in NAND pricing and demand trends by the September quarter as excess inventory is reduced [10][13] Analyst Ratings - Cantor Fitzgerald maintains an Overweight rating with a price target of $95, while Barclays lowered its target from $90 to $80 [11] - BofA raised its price target to $84 from $80, and Morgan Stanley maintains a Buy rating with a target of $93 [11] Future Outlook - The demand for storage is expected to increase due to strong AI compute infrastructure needs, providing a favorable backdrop for long-term growth [12] - Analysts anticipate a recovery in consumer and cyclical segments of the market in the latter half of 2025 [13]

Company Performance - Western Digital is expected to report an EPS of $1.87, representing a 371.01% increase year-over-year [1] - Revenue is anticipated to be $4.28 billion, indicating a 41.08% increase compared to the same quarter of the previous year [1] - For the entire fiscal year, earnings are projected at $7.14 per share and revenue at $16.64 billion, reflecting changes of +3670% and +27.99% respectively from the previous year [7] Analyst Estimates - Recent changes to analyst estimates for Western Digital suggest a shifting business landscape, with positive revisions indicating a favorable business outlook [2] - The consensus EPS projection has decreased by 4.52% over the past 30 days, and Western Digital currently holds a Zacks Rank of 5 (Strong Sell) [3] Industry Context - The Computer-Storage Devices industry is part of the broader Computer and Technology sector, currently holding a Zacks Industry Rank of 218, placing it in the bottom 14% of over 250 industries [4] - Western Digital's stock has decreased by 16.84% in the past month, underperforming the Computer and Technology sector's gain of 4.8% and the S&P 500's loss of 0.36% [11] Valuation Metrics - Western Digital is trading at a Forward P/E ratio of 8.5, which is below the industry average Forward P/E of 13.61, indicating a discount relative to its peers [9]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Western Digital (WDC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Western Digital currently has an ave ...

Western Digital Corporation (NASDAQ:WDC) Barclays 22nd Annual Global Technology Conference December 12, 2024 12:15 PM ET Company Participants David Goeckeler - CEO Wissam Jabre - EVP and CFO Conference Call Participants Thomas O'Malley - Barclays Thomas O'Malley Welcome back to the Barclays Global Tech Conference. I'm Tom O'Malley, semiconductor and semi cap equipment analyst here at Barclays. Very pleased to have David Goeckeler and with Wissam Jabre here from Western Digital. Thank you guys for being her ...