Western Digital shares in late trading have rallied 6.9%, to $76.


Shares of Western Digital were trading higher late Thursday on better-than-expected financial results for the disk drive and flash memory company’s fiscal third quarter ended March 31.

Western Digital (ticker: WDC) posted revenue of $4.1 billion, down 1% from a year ago but ahead of the guidance range of $3.8 billion to $4.05 billion. Non-GAAP profits were $1.02 a share, well above the company’s forecast of 55 cents to 75 cents.  

The company said the strong results reflected “increasing momentum” for both “energy assisted drives” and current generation solid-state drives, as well as “improving NAND flash pricing trends.”

For the June quarter, Western sees revenue of $4.4 billion to $4.6 billion, with non-GAAP profits of $1.30 to $1.60 a share, above the Street consensus forecast at $4.3 billion and $1.02 a share.

Western said its client devices business had revenue of $2 billion, up 10% from a year ago, driven by “continued strength in notebook and desktop PC demand, as well the ramp of new game consoles. 

Data center devices had revenue of $1.2 billion, down 19%, although the company said it had sequential growth with its NVMe (nonvolatile memory express, a connection standard for certain memory devices) enterprise solid-state drives at an unspecified “cloud titan.” (That is apparently a reference to one of the big three cloud companies— Amazon, Microsoft or Google.) The company added that “qualifications of Western Digital’s energy-assisted hard drives have also been completed with nearly all cloud and enterprise customers, including all cloud titans.”

The company said its client solutions segment had revenue of $888 million, up 8%, driven by strength in products sold at retail.

Western Digital shares in late trading have rallied 6.9%, to $76.

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

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