Textual content dimension
Western Digital shares in late buying and selling have rallied 6.9%, to $76.
Dreamstime
Shares of
Western Digital
have been buying and selling larger late Thursday on better-than-expected monetary outcomes for the disk drive and flash reminiscence firm’s fiscal third quarter.
Western Digital (ticker: WDC) posted income of $4.1 billion within the quarter ended March 31, down 1% from a yr in the past however forward of the steering vary of $3.8 billion to $4.05 billion. Non-GAAP earnings have been $1.02 a share, properly above the corporate’s forecast of 55 cents to 75 cents.
The corporate mentioned the robust outcomes mirrored “growing momentum” for each “vitality assisted drives” and present era solid-state drives, in addition to “enhancing NAND flash pricing tendencies.”
For the June quarter, Western sees income of $4.4 billion to $4.6 billion, with non-GAAP earnings of $1.30 to $1.60 a share, above the Avenue consensus forecast at $4.3 billion and $1.02 a share.
Western mentioned its consumer units enterprise had income of $2 billion, up 10% from a yr in the past, pushed by “continued energy in pocket book and desktop PC demand, as properly the ramp of recent recreation consoles.
Knowledge heart units had income of $1.2 billion, down 19%, though the corporate mentioned it had sequential progress with its NVMe (nonvolatile reminiscence categorical, a connection customary for sure reminiscence units) enterprise solid-state drives at an unspecified “cloud titan.” (That’s apparently a reference to one of many massive three cloud firms—
Amazon,
Microsoft
or Google.) The corporate added that “{qualifications} of Western Digital’s energy-assisted exhausting drives have additionally been accomplished with almost all cloud and enterprise prospects, together with all cloud titans.”
The corporate mentioned its consumer options section had income of $888 million, up 8%, pushed by energy in merchandise bought at retail.
In an interview with Barron’s, Western Digital CEO
David Goeckeler
mentioned that flash reminiscence gadget pricing continues to strengthen, and he says Western has been capable of increase costs for shopper merchandise bought by means of retailers and distributors on weekly, and in some instances, each day foundation. “We’re capable of react to market modifications, and shift provide to the place there’s extra market alternative,” he says.
Goeckeler declined to supply a long-term outlook for reminiscence costs, however he did says that the corporate continues to see “a powerful demand setting.” He provides that offer constraints usually are not actually a problem for the corporate – though the corporate makes use of micro-controllers and different components which can be in brief provide. “We’re managing by means of all of that,” he says.
Goeckeler wouldn’t touch upon latest hypothesis that the corporate may purchase Kioxia, its Japan-based flash manufacturing three way partnership companion. He says the partnership “is incredible,” and contains R&D in addition to manufacturing. He notes that the 2 firms collectively are the most important flash reminiscence producer on the planet. “On this enterprise, you need scale,” he says.
In the meantime, Goeckeler notes that there’s been a small however noticeable decide up in demand for prime capability disk-drivers from a brand new crypto forex known as Chia that requires cash to be “farmed” fairly than “mined,” with a strategy that requires massive capability drives.
Western Digital shares in late buying and selling have rallied 6.9%, to $76.
Write to Eric J. Savitz at [email protected]
Source link
