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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

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From: Sam

1/30/2020 5:34:03 PM

of 4826

Western Digital Stock Is Spiking on Solid Earnings and a Strong Outlook -- Barrons.com
DOW JONES & COMPANY, INC. 5:32 PM ET 1/30/2020

Symbol Last Price Change

WDC	66.96	+0.2 (+0.3%)
QUOTES AS OF 04:00:00 PM ET 01/30/2020

Western Digital (WDC) shares are moving higher after hours Thursday, after the disk-drive and flash-memory chip company posted better-than-expected profit for its fiscal second quarter ended Jan. 3.

Third-quarter guidance was well above previous expectations, the key driver being improving prices for flash memory.

For the quarter, Western Digital(WDC) reported revenue of $4.2 billion, in line with Wall Street analyst consensus, while adjusted profit was 62 cents a share, 4 cents better than consensus.

For the third quarter ending April 3, the company projects revenue of $4.1 billion to $4.3 billion, with profit of 85 cents to $1.05 a share, well above the previous Street consensus at $4.06 billion and 73 cents.

"The December quarter results reflect strong execution in our product road map, success in increasing our hard drive gross margin, and an improving flash market," CEO Steve Milligan said in a statement. "We expect an accelerated recovery in our flash gross margins, which coupled with ongoing strength in demand for both hard drives and flash, positions us well for continued profitable growth in calendar year 2020."

In a presentation created for the company's earnings call with investors and analysts Thursday afternoon, Western Digital(WDC) said it expects "continued improvement through the calendar year."

The company said flash-bit shipments were up 24% sequentially, with an 8% decline in average sales price per gigabyte. The company expects industry flash supply to increase in the low 30% range in calendar 2020.

Western Digital (WDC) shares were up 6.2% to $71.10 around 5:25 p.m. Thursday after climbing 0.3% in regular trading.

Write to Eric J. Savitz at eric.savitz@barrons.com

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