Western Digital Corp (WDC) Reports Fiscal First Quarter 2024 Financial Results
Western Digital Corp (NASDAQ:WDC) reported Q1 2024 revenue of $2.75 billion, a 3% increase from the previous quarter.
GAAP earnings per share (EPS) was $(2.17) and Non-GAAP EPS was $(1.76), both including $225 million of underutilization-related charges in Flash and HDD.
Operating cash outflow of $626 million with $2.03 billion of total cash and cash equivalents at the end of the quarter.
Expectations for Q2 2024 revenue range from $2.85 billion to $3.05 billion, with Non-GAAP EPS between $(1.35) to $(1.05).
On October 30, 2023, Western Digital Corp (NASDAQ:WDC) released its fiscal first quarter 2024 financial results. The company reported a sequential increase in revenue, with a 3% rise to $2.75 billion. However, both GAAP and Non-GAAP earnings per share (EPS) were in the negative, at $(2.17) and $(1.76) respectively, inclusive of $225 million of underutilization-related charges in Flash and HDD.
Financial Performance
Western Digital Corp (NASDAQ:WDC) reported a sequential revenue increase of 3% to $2.75 billion. The company's gross margin increased by 0.2 percentage points to 3.6% on a GAAP basis and 4.1% on a Non-GAAP basis. Operating expenses decreased by 6% to $695 million on a GAAP basis and by 5% to $555 million on a Non-GAAP basis. The company reported a net loss of $685 million on a GAAP basis and $554 million on a Non-GAAP basis.
End Market Summary
Cloud revenue, representing 32% of total revenue, decreased by 12% sequentially due to lower nearline hard drive shipments to data center customers. Client revenue, accounting for 42% of total revenue, increased by 11% sequentially due to growth in flash bit shipments. Consumer revenue, making up 26% of total revenue, increased by 14% both sequentially and year-over-year, driven by higher content per unit and unit shipments in flash.
Outlook for Fiscal Second Quarter of 2024
Western Digital Corp (NASDAQ:WDC) expects fiscal second quarter 2024 revenue to be in the range of $2.85 billion to $3.05 billion. The company also anticipates Non-GAAP EPS in the range of $(1.35) to $(1.05), which includes $110 to $130 million of underutilization-related charges in Flash and HDD.
CEO's Commentary
David Goeckeler, Western Digital CEO, commented on the results, stating,
Western Digitals fiscal first quarter results exceeded our expectations as the teams efforts to bolster business agility and develop differentiated and innovative products across a broad range of end-markets have resulted in sequential margin improvement across flash and HDD businesses. Our Consumer and Client end markets continue to perform well and we now expect our Cloud end market to grow going forward. Our improved cost structure positions Western Digital to capitalize on enhanced earnings power as market conditions continue to improve.
For more detailed financial information, please visit the company's earnings presentation available online at investor.wdc.com.
Explore the complete 8-K earnings release (here) from Western Digital Corp for further details.
This article first appeared on GuruFocus.
