Western Digital Results Beat On Revenue But Miss Sharply On Earnings

Must read

Album Review: FUCKED UP One Day

If there’s a band that’s not going to deliver very much of a Metal Injection on this day, or any other day...

SHARON OSBOURNE On KANYE WEST Using An Unauthorized BLACK SABBATH Sample: “F*ck You”

Kanye West found himself in a bit of hot water yesterday...

The Second Adidas x Sporty & Rich Collab Includes Summer-Ready Sambas

Photo: Courtesy of Adidas x Sporty and Rich.Sportswear lovers have plenty to celebrate this summer thanks to a new collection from Adidas and Sporty...

Western Digital (WDC) reported quarterly results late Tuesday that beat revenue estimates but fell short on earnings. WDC stock dropped.

The maker of disk drives and memory chips reported an adjusted loss of 42 cents a share on revenue of $3.11 billion. Analysts expected Western Digital to show an adjusted loss of 15 cents on revenue of $2.99 billion.

The loss included $100 million of charges related to underutilization in hard disk drives, the company said.

WDC stock dropped 5.6% to 41.48 during after-hours trading on the stock market today.

The report comes as the memory-chip market is suffering one of its most difficult times ever. Western Digital’s report follows that of disk-drive rival Seagate Technology (STX). Seagate reported better-than-expected earnings results last week, during what the company called tough macroeconomic conditions.

“The Western Digital team delivered revenue at the high end of our guidance range, despite a challenging flash price environment and continued cloud inventory digestion,” Chief Executive David Goeckeler said in a written statement with the earnings release.

WDC Stock: Talks Of Possible Merger

Western Digital is rumored to be in advanced talks for a possible merger with Japan’s Kioxia Holdings, according to a report from Bloomberg.

Bloomberg said a combined Western Digital and Kioxia would control a third of the NAND flash market, putting it on par with South Korea’s Samsung Electronics.

Kioxia was spun out from Toshiba. Further, Kioxia and Western Digital jointly produce flash memory chips in Japan.

In June, Western Digital announced a review of strategic alternatives following discussions with activist investor Elliott Investment Management. The plan could result in the separation of its two businesses — disk drives and memory chips.

Also, WDC stock has an IBD Composite rating of 34 out of 99.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

YOU MAY ALSO LIKE:

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

How To Use The 10-Week Moving Average For Buying And Selling

Find The Best Long-Term Investments With IBD Long-Term Leaders

IBD Stocks On The Move: Watch For Breakouts Here

Inside The IBD 50: Top Stocks To Watch

More articles

Latest article

Navigating North America’s Heavy Haul: Vectra Heavy Haulers Redefines Oversized Freight Transportation

In the vast expanse of North America—where the transportation of oversized and overweight freight poses unique challenges—one company stands out as a leading force...

These Are The 5 Best Stocks To Buy And Watch Now

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. So what are the best stocks...

Flash-Sale Site Gilt Is A Goldmine For Designer Summer Trends Up To 70% Off

For many of us, the only way we can justify buying luxury fashion pieces is if it’s on major sale. The main issue is...

Vulkan Vegas Promo Code Juli 2023: Bis zu 1000 Bonus

Bonus bietet einige Freispiele, in denen das Spiel kennengelernt sei. Dieser Bonus ist an eine bestimmte Anzahl von Drehungen gebunden oder für einen bestimmten...

House Refuses To Kill Censure Motion Against Rep. Rashida Tlaib

By a vote of 208-213-1, the House failed to kill a resolution to censure Rep. Rashida Tlaib (D-MI) for...