Shares fell sharply late in Thursday after the disk and flash chip company provided disappointing earnings guidance for its fiscal second quarter ending in December.
The company is one of many technology hardware vendors struggling with supply chain issues. The two
posted disappointing results for the last quarter, in large part due to supply chain issues, with parts shortages and high shipping costs.
Western Digital stock (ticker: WDC) in after-hours trading fell 10% to $ 51.49.
For the September quarter, Western Digital posted revenue of $ 5.1 billion, up 29% from a year ago, roughly even with the street at 5.06 billion. dollars. The company saw 72% growth in cloud-related revenue, 6% revenue growth for PCs and other devices, and 10% growth in retail storage devices.
Non-GAAP earnings were $ 2.49 per share, ahead of Street’s consensus outlook of $ 2.45 per share. According to generally accepted accounting principles, the company earned $ 1.93 per share. Non-GAAP gross margin jumped to 33.9% from 26.3% a year ago.
“Strong demand in various end markets, particularly for our cloud products, combined with Western Digital’s powerful innovation engine, broad market entry routes and fine execution, has enabled us to deliver strong results. within our forecast range, even in the face of significant impacts from Covid. and supply chain disruptions, ”said Western Digital CEO David Goekeler.
The company noted that revenue from consumer retail products for flash drives and hard drives declined from the June quarter due to supply disruptions.
For the December quarter, the company reports revenues of between $ 4.7 billion and $ 4.9 billion, with non-GAAP earnings of between $ 1.95 and $ 2.25 per share. The street consensus had called for $ 5.3 billion in revenue and profits of $ 2.67 per share. The company expects a non-GAAP gross margin during the quarter of between 32% and 34%.
Write to Eric J. Savitz at [email protected]