Western Digital (WDC) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

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]