Western Digital Q1 revenue, profit beat estimates on strong demand

Western Digital

Yesterday 21:09

Overview
Storage hardware maker's fiscal Q1 revenue rose 55% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q1 up 161% yr/yr, beating analyst expectations
Company raised quarterly dividend by 17%

Outlook
Western Digital expects Q2 revenue of $5.1 bln, plus or minus $100 mln
Company sees Q2 non-GAAP EPS of $5.80, plus or minus $0.20
Western Digital expects Q2 non-GAAP gross margin between 60% and 61%

Result Drivers
CUSTOMER DEMAND - Co said robust customer demand and disciplined execution drove revenue and margin growth
TECHNOLOGY TRANSITIONS - Co cited execution on technology transitions and expanding customer base as supporting demand
VOLUME AND PRICING - CFO said robust exabyte growth and improved pricing contributed to strong results

Company press release: ID:nBw7P2Y3ga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$4.38 bln
$4.14 bln (20 Analysts)
Q1 Adjusted EPS
Beat
$4.64
$4.09 (21 Analysts)
Q1 EPS
 
$4.63
 
Q1 Net Income
 
$1.78 bln
 
Q1 Gross Margin
 
57.80%
 
Q1 Operating Income
 
$2.05 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy"
Wall Street's median 12-month price target for Western Digital Corp is $625.00, about 65.1% above its October 21 closing price of $378.51
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 36 three months ago

Reuters Recommended Reads
Oct 22 - US blocks two devices with Chinese-made surveillance chips
Oct 20 - Taiwan September export orders hit record value on solid AI demand 
Oct 20 - ByteDance, Alibaba, Tencent place over $35 billion worth of Nvidia chip orders

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)