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Shares of Western Digital (NASDAQ:WDC) on Thursday slipped greater than 5% in prolonged buying and selling, after the info storage firm reported its seventh consecutive quarterly decline in income.
WDC inventory was final down 5.3% to $57.12.
Western Digital (WDC) posted a FQ2 2024 adjusted loss per share of 69 cents on income of $3.03B. Analysts had been anticipating the corporate to put up a loss per share of $1.10 on income of $3.01B.
However, income fell about 2% Y/Y. The decline was largely because of a 13% Y/Y fall in gross sales within the firm’s cloud enterprise because of decrease e-solid state drive bit shipments.
Last quarter, Western Digital (WDC) stated it could break up its exhausting disk drive (HDD) and flash reminiscence companies into two, separate firms by H2 2024. That transfer got here after talks of merging the flash reminiscence unit with Japan’s Kioxia stalled.
In FQ2, WDC’s flash income climbed barely by 0.5% Y/Y to $1.67B. Meanwhile, HDD income fell 5.7% Y/Y to $1.37B. WDC additionally stated that its quarterly loss included $156M of underutilization-related fees in flash and HDD.
“Western Digital’s (WDC) second quarter results demonstrate that the structural changes we have put in place over the last few years and the strategy we have been executing are producing significant outperformance across our flash and HDD businesses,” prime boss David Goeckeler stated in an announcement.
Turning to WDC’s steering, for FQ3 the corporate sees an adjusted loss per share of 10 cents to adjusted earnings per share of 20 cents. The consensus estimate is for a loss per share of 29 cents. Revenue is anticipated to be $3.20B to $3.40B, versus a consensus estimate of $3.18B.
Shares of Western Digital (WDC) rival Seagate (STX) had been down 3.8% to $87.50 after hours. Seagate (STX) on Wednesday additionally posted a seventh straight quarter of income decline.