Financial Data and Key Metrics Changes - Western Digital reported total revenue of $4.1 billion, representing a 9% sequential increase and a 49% year-over-year increase [13] - Non-GAAP gross margin was 38.5%, up 220 basis points sequentially, and non-GAAP earnings per share were $1.78 [13][15] - Operating income increased by 33% sequentially to $884 million, with an operating margin of 21.6%, the highest in five years [16] Business Line Data and Key Metrics Changes - Flash revenue reached $1.9 billion, up 7% sequentially and 21% year-over-year, driven by strong demand for enterprise SSD products [14] - HDD revenue was $2.2 billion, up 10% sequentially and 85% year-over-year, with nearline bit shipments at a record level of 141 exabytes [14][15] - The gross margin for Flash was 38.9%, up 240 basis points sequentially, while HDD gross margin was 38.1%, up 200 basis points sequentially [15][16] Market Data and Key Metrics Changes - Cloud represented 54% of total revenue at $2.2 billion, up 17% sequentially and more than doubling year-over-year [13] - Client segment represented 29% of total revenue at $1.2 billion, flat sequentially and up 5% year-over-year [13] - Consumer segment accounted for 17% of revenue at $0.7 billion, flat sequentially and down 7% year-over-year [13] Company Strategy and Development Direction - The company is on track with the separation of its Flash and HDD businesses, having completed the soft-spin phase [6][7] - The focus remains on enhancing product offerings, particularly in enterprise SSDs, to capitalize on the AI Data Cycle and growing storage needs [5][21] - The company anticipates continued growth in both Flash and HDD segments, with a strong emphasis on operational excellence and maintaining a balanced supply-demand dynamic [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the product roadmap and the significant opportunities presented by the AI Data Cycle [21] - The company expects a recovery in consumer and client end markets as it moves through calendar year 2025 [9] - There is a positive outlook for enterprise SSDs, with expectations for the mix to comprise over 15% of overall portfolio bit shipments in fiscal year 2025 [9][24] Other Important Information - The company completed the sale of 80% of its equity interest in SanDisk Semiconductor Shanghai to JCET, forming a joint venture [18] - Cash capital expenditures for the fiscal first quarter were $48 million, with total liquidity of $3.9 billion [17] Q&A Session Summary Question: Can you speak to the qualifications seen with enterprise SSDs, particularly with NVIDIA's GB200? - Management noted strong confidence in the enterprise SSD portfolio, with qualifications doubling in the last quarter and strong demand expected [23][24] Question: How is pricing negotiation evolving in the HDD industry? - Management indicated improved visibility into customer demand and a better supply-demand balance, which supports pricing negotiations [26] Question: What is the plan for separating the companies? - The company is executing a soft-spin phase and will report one set of numbers for the December quarter, with plans to file the Form-10 during the March quarter [29][30] Question: How much room is there for expanding HDD capacity? - Management stated that they have sized their infrastructure to meet market demand and are focused on driving profitability without expanding the manufacturing capacity footprint [34][35] Question: What is the outlook for Flash ASPs given the mixed market conditions? - Management expects blended pricing to be flat with some cost headwinds, while enterprise SSDs remain strong [46][47] Question: How does the company ensure that HDD shipments are not piling up as inventory? - Management expressed confidence that there is no excessive inventory being built and emphasized close relationships with customers to gauge future demand [50] Question: What are the CapEx expectations for HDD and Flash for the rest of the year? - Management indicated that gross CapEx is expected to remain in line with the average over the last few quarters [51]

Western Digital (WDC) reported $4.1 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 48.9%. EPS of $1.78 for the same period compares to -$1.76 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.11 billion, representing a surprise of -0.39%. The company delivered an EPS surprise of +2.30%, with the consensus EPS estimate being $1.74.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

Company Performance - Western Digital reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.74 per share, and a significant improvement from a loss of $1.76 per share a year ago, indicating an earnings surprise of 2.30% [1] - The company generated revenues of $4.1 billion for the quarter ended September 2024, which was below the Zacks Consensus Estimate by 0.39%, but an increase from $2.75 billion in the same quarter last year [1] - Over the last four quarters, Western Digital has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [1] Stock Performance - Western Digital shares have increased approximately 27.2% since the beginning of the year, outperforming the S&P 500's gain of 21.5% [2] - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future earnings expectations [2][3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.01 on revenues of $4.31 billion, and for the current fiscal year, it is $7.91 on revenues of $17.13 billion [4] - The estimate revisions trend for Western Digital is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [4] Industry Context - The Computer-Storage Devices industry, to which Western Digital belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a relatively strong position [5] - Another company in the same industry, Super Micro Computer, is expected to report quarterly earnings of $0.75 per share, reflecting a year-over-year increase of 120.6%, with revenues projected to be $6.52 billion, up 207.5% from the previous year [5]

Financial Performance - First quarter revenue was $4.10 billion, up 9% sequentially and up 49% year-over-year[1][4] - GAAP earnings per share (EPS) was $1.35, up 1588% from $0.08 in the previous quarter[3][4] - Non-GAAP EPS was $1.78, up 24% from $1.44 in the previous quarter[3] - Operating income was $742 million, up 244% from $216 million in the previous quarter[3] - Total net revenue for the three months ended September 27, 2024, was $4,095 million, a significant increase from $2,750 million in the same period last year, representing a growth of 49%[16] - Operating income for the quarter was $742 million, a turnaround from an operating loss of $596 million in the same quarter last year[16] - Net income attributable to common shareholders was $481 million, compared to a net loss of $700 million in the prior year[16] - GAAP net income for September 2024 was $493 million, compared to a loss of $685 million in September 2023[20] - Non-GAAP net income for September 2024 was $648 million, up from a loss of $554 million in September 2023[20] - Non-GAAP diluted net income attributable to common shareholders was $634 million, compared to a loss of $569 million in the same period last year[20] Revenue Breakdown - Cloud revenue increased 17% sequentially and 153% year-over-year, representing 54% of total revenue[6][7] - The HDD segment generated $2,211 million in revenue, up from $1,194 million, while the Flash segment reported $1,884 million, down from $1,556 million[18] Cash Flow and Liquidity - The company had an operating cash inflow of $34 million and ended the quarter with $1.71 billion in cash and cash equivalents[4] - Cash and cash equivalents decreased to $1,705 million from $1,879 million at the end of the previous quarter[17] - Total current assets increased to $8,942 million from $8,060 million, driven by higher accounts receivable and inventories[14] - The company reported a significant improvement in cash flow from operations, generating $34 million compared to a cash outflow of $626 million in the same quarter last year[17] - Free cash flow for September 2024 was negative $14 million, a decrease from positive $282 million in the previous quarter[20] - Cash flow provided by operating activities was $34 million, down from $366 million in the previous quarter[20] Expenses and Costs - Operating expenses decreased by 29% sequentially to $809 million[3] - Research and development expenses rose to $519 million from $431 million, indicating a focus on innovation and new product development[16] - The company incurred $84 million in stock-based compensation expense for the quarter[20] - Business separation costs amounted to $43 million, reflecting the separation of HDD and Flash business units[20] - The company recognized $14 million in expenses related to a litigation matter during the quarter[20] Future Outlook - The company expects fiscal second quarter 2025 revenue to be in the range of $4.20 billion to $4.40 billion[1][8] Legal Matters - A jury returned a verdict in a patent infringement case against the company for $316 million, which is currently under evaluation[10] Profitability Metrics - Gross margin for the first quarter was 37.9%, up 2.0 percentage points from the previous quarter[3] - Gross profit for the same period was $1,551 million, compared to only $99 million in the prior year, resulting in a gross margin of 37.9%, up from 3.6%[16][18] - GAAP diluted income per share for September 2024 was $1.35, a significant increase from a loss of $2.17 in September 2023[20] - Non-GAAP diluted income per share for September 2024 was $1.78, compared to a loss of $1.76 in September 2023[20]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?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 average brokerage recomm ...

Western Digital Corporation (WDC) will report fiscal first-quarter 2025 results on Oct. 24.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate is pegged at earnings of $1.72 per share, down 1.2% in the past 60 days. WDC reported a loss per share of $1.76 in the prior-year quarter. For the fiscal first quarter, Management projects non-GAAP earnings in the range of $1.55 to $1.85 per share.Western Digital expects non-GAAP revenues in the range of $4-$4.2 billi ...

Core Viewpoint - Analysts project that Western Digital (WDC) will report quarterly earnings of $1.72 per share, reflecting a year-over-year increase of 197.7% and revenues of $4.11 billion, up 49.5% from the same quarter last year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1] - Analysts predict 'Net Revenue- Flash' will reach $2.05 billion, representing a 32% increase from the year-ago quarter [2] - The consensus for 'Net Revenue- HDD' is projected at $2.03 billion, indicating a 70% increase from the prior-year quarter [2] - 'Gross profit- HDD' is expected to reach $764.66 million, compared to $273 million reported in the same quarter of the previous year [2] Group 2: Stock Performance and Market Outlook - Western Digital shares have changed by +0.4% in the past month, while the Zacks S&P 500 composite has moved +4.5% [3] - With a Zacks Rank 5 (Strong Sell), WDC is expected to underperform the overall market in the near term [3]

Core Viewpoint - Western Digital's stock has been trending due to recent searches, with a performance of +2.1% over the past month, lagging behind the S&P 500's +3.8% and the Computer-Storage Devices industry's +7.5% [1] Earnings Estimates - For the current quarter, Western Digital is expected to report earnings of $1.72 per share, reflecting a significant increase of +197.7% year-over-year [3] - The consensus earnings estimate for the current fiscal year is $8.35, indicating a remarkable change of +4,275% from the previous year [3] - For the next fiscal year, the earnings estimate is $9.65, showing a growth of +15.5% compared to the prior year [3] Revenue Growth - The consensus sales estimate for the current quarter is $4.11 billion, representing a year-over-year increase of +49.5% [5] - For the current fiscal year, the revenue estimate is $17.13 billion, indicating a growth of +31.8% [5] - The next fiscal year's revenue estimate is $19.27 billion, reflecting a change of +12.5% [5] Recent Performance - In the last reported quarter, Western Digital achieved revenues of $3.76 billion, a year-over-year increase of +40.9% [6] - The EPS for the same period was $1.44, a significant improvement from -$1.98 a year ago [6] - The company has consistently beaten consensus EPS estimates over the last four quarters and topped revenue estimates three times [6] Valuation - Western Digital's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing its stock value [7] - The Zacks Value Style Score grades Western Digital with a D, indicating it is trading at a premium compared to its peers [8]

Western Digital (WDC) closed the most recent trading day at $67.79, moving +1.25% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.47%. On the other hand, the Dow registered a gain of 0.79%, and the technology-centric Nasdaq increased by 0.28%.Heading into today, shares of the maker of hard drives for businesses and personal computers had gained 1.61% over the past month, lagging the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48% in that tim ...

Western Digital (WDC) closed at $64.05 in the latest trading session, marking a -0.67% move from the prior day. This change lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.05%.Shares of the maker of hard drives for businesses and personal computers witnessed a gain of 1.85% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 9.62% and the S&P 500's gain of 5.94%.Analysts a ...