Western Digital Stock Tumbles as Earnings Outlook Disappoints -- Barrons.com
DOW JONES & COMPANY, INC. 5:34 PM ET 8/5/2020
Symbol Last Price Change | WDC | 44.47 | -0.29 (-0.65%) | | QUOTES AS OF 04:00:00 PM ET 08/05/2020 |
Western Digital (WDC) stock fell late Wednesday after the disk-drive and memory chip company provided a disappointing outlook for the company's September quarter.
For the June quarter, Western Digital(WDC) reported revenue of $4.3 billion, up 18% from a year ago, and in line with Street estimates. Non-GAAP earnings were $1.23 a share, two pennies higher than consensus. Revenue from the company's client devices segment was $1.9 billion, up 19%, while data center devices and solutions revenue was $1.7 billion, up 32%. But the client solutions segment, which includes products sold at retail, reported a 9% decrease in revenue to $687 million, amid the closing of many bricks-and-mortar stores.
The big story, though, was disappointing guidance. For the September quarter, Western sees revenue of $3.7 billion to $3.9 billion, with a non-GAAP profit of 45 to 65 cents a share, below the previous Street consensus of $4.35 billion and $1.33 a share.
Western Digital (WDC) CEO David Goeckeler said in a statement that while the company continues to "navigate through a dynamic environment," it remains focused on managing the business for the long-term. That, he said, includes "including ramping two important product lines to high volume: our SSD [solid-state drive] products and our energy-assisted capacity enterprise drives."
In late trading, Western Digital(WDC) shares tumbled 13% to $38.76.
Write to Eric J. Savitz at eric.savitz@barrons.com |
