Goldman Sachs Updates Rating on Western Digital Corporation (NASDAQ:WDC)

Western Digital (NASDAQ:WDC) reported mixed fiscal second-quarter results, with revenue surpassing expectations but earnings falling short. The data storage giant also issued a disappointing forecast for the current quarter, adding to investor concerns.

For the quarter, Western Digital reported adjusted earnings per share of $1.77, missing analysts' expectations of $1.88. However, revenue climbed 41% year-over-year to $4.29 billion, narrowly beating Wall Street's projection of $4.28 billion.

Despite the revenue beat, the company's guidance for the fiscal third quarter underwhelmed investors. Western Digital expects revenue between $3.75 billion and $3.95 billion, coming in below the consensus estimate of $4.02 billion. Its projected adjusted earnings per share of $0.90 to $1.20 also fell well short of analyst expectations of $1.51.

Breaking down the second-quarter performance, cloud revenue rose 6% sequentially to $2.35 billion, making up 55% of total sales. Meanwhile, client revenue declined 3% from the previous quarter to $1.17 billion, while consumer revenue grew 14% to $771 million. With weaker-than-expected guidance overshadowing solid revenue growth, Western Digital faces renewed pressure to navigate ongoing challenges in the data storage market.

Western Digital (NASDAQ:WDC) reported mixed fiscal second-quarter results, with revenue surpassing expectations but earnings falling short. The data storage giant also issued a disappointing forecast for the current quarter, adding to investor concerns.

For the quarter, Western Digital reported adjusted earnings per share of $1.77, missing analysts' expectations of $1.88. However, revenue climbed 41% year-over-year to $4.29 billion, narrowly beating Wall Street's projection of $4.28 billion.

Despite the revenue beat, the company's guidance for the fiscal third quarter underwhelmed investors. Western Digital expects revenue between $3.75 billion and $3.95 billion, coming in below the consensus estimate of $4.02 billion. Its projected adjusted earnings per share of $0.90 to $1.20 also fell well short of analyst expectations of $1.51.

Breaking down the second-quarter performance, cloud revenue rose 6% sequentially to $2.35 billion, making up 55% of total sales. Meanwhile, client revenue declined 3% from the previous quarter to $1.17 billion, while consumer revenue grew 14% to $771 million. With weaker-than-expected guidance overshadowing solid revenue growth, Western Digital faces renewed pressure to navigate ongoing challenges in the data storage market.

• Citigroup reiterates a "Buy" rating for Western Digital Corporation (NASDAQ:WDC), with a current stock price of $65.99.
• The average brokerage recommendation (ABR) for WDC stands at 1.48, indicating a strong buy sentiment among analysts.
• Despite a recent price drop of 5.59%, Western Digital's market capitalization and positive analyst ratings suggest continued investor interest.

Western Digital Corporation (NASDAQ:WDC) is a prominent player in the data storage industry, known for its hard drives and solid-state drives. The company competes with other tech giants like Seagate Technology and Toshiba. On December 12, 2024, Citigroup reiterated its "Buy" rating for WDC, with the stock priced at $65.99. The action associated with this rating is "hold," as highlighted by StreetInsider.

Wall Street analysts currently view Western Digital favorably, with an average brokerage recommendation (ABR) of 1.48. This rating, on a scale from 1 to 5, indicates a position between Strong Buy and Buy. Out of 21 brokerage firms, 16 have rated WDC as a Strong Buy, making up 76.2% of all recommendations. Such positive sentiment can influence investor decisions and impact the stock's price.

Despite the positive ratings, WDC's stock price has experienced a decrease of $3.91, a drop of approximately 5.59%, bringing it to $65.99. During the trading day, the stock fluctuated between a low of $65 and a high of $70.04. Over the past year, WDC has seen a high of $81.55 and a low of $48.96, reflecting its volatility.

Western Digital's market capitalization is approximately $22.81 billion, indicating its significant presence in the tech industry. The trading volume for the day was 9,726,438 shares, suggesting active investor interest. Despite the recent price drop, the company's strong market position and positive analyst ratings may continue to attract investors.

• Citigroup reiterates a "Buy" rating for Western Digital Corporation (NASDAQ:WDC), with a current stock price of $65.99.
• The average brokerage recommendation (ABR) for WDC stands at 1.48, indicating a strong buy sentiment among analysts.
• Despite a recent price drop of 5.59%, Western Digital's market capitalization and positive analyst ratings suggest continued investor interest.

Western Digital Corporation (NASDAQ:WDC) is a prominent player in the data storage industry, known for its hard drives and solid-state drives. The company competes with other tech giants like Seagate Technology and Toshiba. On December 12, 2024, Citigroup reiterated its "Buy" rating for WDC, with the stock priced at $65.99. The action associated with this rating is "hold," as highlighted by StreetInsider.

Wall Street analysts currently view Western Digital favorably, with an average brokerage recommendation (ABR) of 1.48. This rating, on a scale from 1 to 5, indicates a position between Strong Buy and Buy. Out of 21 brokerage firms, 16 have rated WDC as a Strong Buy, making up 76.2% of all recommendations. Such positive sentiment can influence investor decisions and impact the stock's price.

Despite the positive ratings, WDC's stock price has experienced a decrease of $3.91, a drop of approximately 5.59%, bringing it to $65.99. During the trading day, the stock fluctuated between a low of $65 and a high of $70.04. Over the past year, WDC has seen a high of $81.55 and a low of $48.96, reflecting its volatility.

Western Digital's market capitalization is approximately $22.81 billion, indicating its significant presence in the tech industry. The trading volume for the day was 9,726,438 shares, suggesting active investor interest. Despite the recent price drop, the company's strong market position and positive analyst ratings may continue to attract investors.

• Goldman Sachs has updated its rating on Western Digital Corporation (NASDAQ:WDC) to Neutral, reflecting a hold position on the stock.
• The company's focus on enterprise solid-state drives (SSDs) is highlighted amid strong market demand.
• Western Digital's participation in the Goldman Sachs Communacopia + Technology Conference showcases its commitment to growth areas like flash business and enterprise SSDs.

Goldman Sachs recently updated its rating on Western Digital Corporation (NASDAQ:WDC) to Neutral, indicating a hold position on the stock. This decision was made public on Tuesday, September 10, 2024, when the stock was trading at $62.79. Western Digital, a key player in the data storage industry, is recognized for its significant contributions to the development and manufacture of hard disk drives, solid-state drives, and flash memory products. The company's focus on enterprise solid-state drives (SSDs) is particularly noteworthy, as Goldman Sachs points out the strong demand in this segment. This demand is crucial for Western Digital, given the competitive landscape of the data storage market, where innovation and performance are key drivers of success.

On the same day as the rating update, Western Digital participated in the Goldman Sachs Communacopia + Technology Conference. This event provided an excellent platform for the company to showcase its strengths, particularly in the flash business segment. Amitesh Bajad from Investor Relations and Robert Soderbery, the Executive Vice President and General Manager of the Flash Business, represented Western Digital. Their participation underscores the company's commitment to maintaining a strong presence in the industry and its focus on areas of growth, such as enterprise SSDs.

The stock's performance on the day of the conference and rating update is also worth noting. Western Digital's shares saw a modest increase of $0.18, or approximately 0.29%, closing at $62.79. This movement is part of a broader trend observed over the past year, where the stock has experienced fluctuations, reaching a low of $35.62 and a high of $81.55. Such volatility reflects the dynamic nature of the tech sector, influenced by factors like product demand, innovation, and market competition.

Western Digital's market capitalization, standing at about $21.57 billion, along with a trading volume of 3,173,133 shares, highlights the company's significant footprint in the technology sector. The data storage market is highly competitive, with several key players vying for leadership. Western Digital's focus on enterprise SSDs, as highlighted by Goldman Sachs, positions the company well to capitalize on the growing demand for high-performance storage solutions. This strategic focus, combined with the insights shared at the Goldman Sachs Communacopia + Technology Conference, paints a picture of a company that is actively working to strengthen its market position and respond to the evolving needs of its customers.

Western Digital Corp. (NASDAQ:WDC) shares dropped more than 4% in pre-market today after the company reported fourth-quarter revenue that fell short of Wall Street expectations and provided a cautious outlook for the first quarter of 2025.

In the fourth quarter, Western Digital posted earnings of $1.44 per share, surpassing the Street estimate of $1.16. Despite this, revenue for the quarter was $3.76 billion, slightly below the analyst forecast of $3.74 billion. This revenue figure, however, represents a substantial 41% increase from $2.672 billion in the same period last year, showcasing significant year-over-year growth.

Looking ahead, Western Digital's guidance for the first quarter of 2025 did not meet analyst expectations. The company projected earnings between $1.55 and $1.85 per share, with the midpoint falling short of the Street estimate of $1.76. Additionally, the company forecasted revenue between $4 billion and $4.2 billion, below the analyst consensus of $4.23 billion.

CEO David Goeckeler highlighted the company's progress and strategic positioning amidst market recovery. He noted the structural improvements in profitability for both Flash and HDD segments, and emphasized the transformative impact of the AI Data Cycle, which is expected to drive increased demand for storage solutions.