Western Digital Corporation (NASDAQ:WDC) Wells Fargo 8th Annual TMT Summit Conference Call December 4, 2024 12:30 PM ET Company Participants Rob Soderbery - Executive Vice President, Flash Conference Call Participants Aaron Rakers - Wells Fargo Securities Aaron Rakers Perfect. So, why don't we go ahead and get started. I'm Aaron Rakers. I'm the IT hardware and semiconductor analyst here at Wells Fargo. Thank you for joining us this morning at Wells Fargo's 8th Annual TMT Conference. And pleased to have the ...

In the latest market close, Western Digital (WDC) reached $73.43, with a +0.6% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.25%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.97%.The maker of hard drives for businesses and personal computers's shares have seen an increase of 10.79% over the last month, surpassing the Computer and Technology sector's gain of 0.06% and the S&P 500's gain of 3.51%.The investment community will be paying close atte ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Western Digital (WDC), and suggests that while the average brokerage recommendation indicates a buy, investors should be cautious and validate this with other analysis tools like the Zacks Rank [1][4][12]. Group 1: Brokerage Recommendations - Western Digital has an average brokerage recommendation (ABR) of 1.48, which is between Strong Buy and Buy, based on recommendations from 21 brokerage firms [2]. - Out of the 21 recommendations, 16 are Strong Buy, accounting for 76.2% of all recommendations [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often do not effectively guide investors towards stocks with the highest potential for price appreciation [4][9]. Group 2: Analyst Bias and Tools - Brokerage analysts tend to exhibit a strong positive bias due to their firms' vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of a stock's near-term price performance compared to the ABR [7][10]. - The Zacks Rank is timely and reflects the latest earnings estimates, while the ABR may not always be up-to-date [11]. Group 3: Current Earnings Estimates for WDC - The Zacks Consensus Estimate for Western Digital remains unchanged at $7.32 for the current year, indicating steady analyst views on the company's earnings prospects [12]. - Due to the unchanged consensus estimate and other factors, Western Digital currently holds a Zacks Rank of 3 (Hold), suggesting caution despite the Buy-equivalent ABR [13].

Group 1 - Investors have historically viewed chip stocks as highly cyclical, leading to lower valuation multiples compared to the broader market [1] - The negative perception of chip stocks has continued into 2024, despite evolving industry dynamics [1] - Gary Alexander, with extensive experience in technology and startups, provides insights into current industry themes [1]

Industry Leadership - Western Digital CEO David Goeckeler has been elected Chair of the SIA Board of Directors for 2025 [1] - SIA represents 99% of the US semiconductor industry by revenue and nearly two-thirds of non-US chip firms [1][3] Executive Profile - David Goeckeler has over four decades of experience in technology and semiconductor industries [1] - He has led Western Digital's transformation as a leading data storage producer [1] - Previously served as Executive Vice President and General Manager of Cisco's Networking and Security Business [1] - Recently appointed Chairman of the US Chamber's US-Japan Business Council [1] Industry Impact - Semiconductor innovation is described as the transformative backbone of modern technology, from smartphones to AI [2] - Effective government policies are crucial for accelerating innovation and expansion in the semiconductor sector [2] Association Overview - SIA is the voice of the semiconductor industry, a top US export industry and key driver of economic strength, national security, and global competitiveness [3] - SIA works with Congress, the Administration, and global stakeholders to encourage policies that fuel innovation and drive international competition [3]

Investment Rating - The report provides a positive outlook for Western Digital Corporation (WDC), indicating strong performance and growth potential, particularly driven by AI demand and innovative product offerings [3][7][32]. Core Insights - Western Digital achieved Non-GAAP revenue of $4.095 billion in FY25Q1, representing a year-over-year increase of 49% and a quarter-over-quarter increase of 9%. The Non-GAAP gross margin was 38.5%, up 34.4 percentage points year-over-year [3][7][9]. - The company is focusing on sustainable and reliable operations, capital investments, and leveraging its diverse product portfolio to target attractive end markets, particularly in flash storage and HDDs [3][7][26]. - The eSSD segment is identified as a key growth driver, with significant advancements in UltraSMR technology enhancing HDD capacity and reliability [3][7][27]. Summary by Sections Overall Performance - In FY25Q1, Western Digital reported Non-GAAP revenue of $4.095 billion, with a Non-GAAP gross margin of 38.5% and a Non-GAAP net profit of $493 million, compared to a loss of $685 million in the same period last year [3][7][9]. Inventory - The inventory turnover days decreased to 121 days, with inventory value rising to $3.384 billion, reflecting a 1.26% increase quarter-over-quarter [10][37]. Revenue by End Market - Cloud revenue reached $2.208 billion, up 17% quarter-over-quarter and 153% year-over-year, accounting for 54% of total revenue [11][15]. - Client revenue was $1.209 billion, flat quarter-over-quarter and up 5% year-over-year, representing 29% of total revenue [12][15]. - Consumer revenue was $678 million, flat quarter-over-quarter and down 7% year-over-year, making up 17% of total revenue [14][15]. Revenue by Product - Flash products generated approximately $1.884 billion in revenue, up 6.98% quarter-over-quarter and 21.08% year-over-year, accounting for 46% of total revenue [16][19]. - HDD products generated approximately $2.211 billion in revenue, up 10.38% quarter-over-quarter and 85.18% year-over-year, representing 54% of total revenue [19][21]. Business Progress - The company has made significant progress in the flash segment, with strong demand for enterprise SSD applications driven by the recovery in the data center market [22][27]. - In the HDD segment, record revenue was achieved, supported by product portfolio advantages and improved market conditions [23][27]. FY25Q2 Guidance - For FY25Q2, Western Digital expects revenue between $4.2 billion and $4.4 billion, with a Non-GAAP gross margin of 37%-39% and Non-GAAP EPS of $1.75 to $2.05 [24][38].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 27, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-8703 WESTERN DIGITAL CORPORATION (Exact Name of Registrant as Specified in Its Charter) Delaware 33-0956711 (State or other j ...

Western Digital (WDC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this maker of hard drives for businesses and personal computers have returned +2.3%, compared to the Zacks S&P 500 composite's +1.8% change. During this period, the Zacks ComputerStorage Devices industry, which Western Digital falls in, has gained 6.5%. The key question now is: ...

Shares of Western Digital Corp WDC were spiking in early trading on Friday, after the company reported upbeat fiscal first-quarter earnings. The company reported its results amid an exciting earnings season. Here are some key analyst takeaways. Cantor Fitzgerald analyst C.J. Muse maintained an Overweight rating, while lifting the price target from $80 to $95. Benchmark analyst Mark Miller reiterated a Buy rating and price target of $92. RBC Capital Markets analyst Matt Bryson reaffirmed an Outperform rating ...

Western Digital Corporation (WDC) reported first-quarter fiscal 2025 non-GAAP earnings of $1.78 per share, surpassing the Zacks Consensus Estimate by 2.3%. The company incurred a loss of $1.76 per share in the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues of $4.1 billion missed the Zacks Consensus Estimate by 0.4%. However, the top line climbed 49% year over year owing to strong demand trends across Cloud end markets. On a sequential basis, revenues inc ...