Western Digital Corp. (NASDAQ:WDC) Reports Fiscal First Quarter 2025 Financial Results
Western Digital Corp. (WDC) has announced its financial results for the fiscal first quarter of 2025, ending September 27, 2024.
Financial Performance Overview
| Metric | Q1 2025 | QoQ Change | Consensus Estimates |
|---|---|---|---|
| Total Revenue | $4.10 billion | +9% | $4.12 billion |
| GAAP EPS | $1.35 | - | - |
| Non-GAAP EPS | $1.78 | - | $1.71 |
Western Digital reported a first-quarter revenue of $4.10 billion, slightly below analyst expectations of $4.12 billion. Despite missing estimates, the company showed a strong quarter-over-quarter growth of 9%, driven by robust cloud demand. The Non-GAAP EPS came in at $1.78, surpassing the consensus estimate of $1.71. Overall, the financial performance suggests solid growth in core business areas, although revenue fell slightly short of expectations.
Revenue Performance by Segment
| Segment | Contribution to Revenue | QoQ Change |
|---|---|---|
| Cloud | 54% | +17% |
| Client | 29% | Flat |
| Consumer | 17% | Slight Growth |
The cloud segment powered the revenue growth with a 17% sequential increase, capturing 54% of total revenues, primarily due to higher HDD and SSD shipments to data centers. The client segment maintained stability, representing 29% of total revenue, with growth in gaming and mobile offset by declines in PC OEM shipments. The consumer segment, though experiencing a slight sequential increase, saw a year-over-year decrease owing to lower bit shipments in both Flash and HDD.
Key Developments and Operational Highlights
- Operating cash inflow was $34 million, and the company ended the quarter with $1.71 billion in cash and cash equivalents.
- Recent litigation resulted in a $316 million judgment against the company. Western Digital is challenging the verdict.
Management Commentary
CEO David Goeckeler emphasized Western Digital's strategic focus on operational excellence and capital investment, highlighting the importance of their diversified portfolio. He remarked on the strong performance and growth potential of their enterprise SSDs and UltraSMR technologies. Goeckeler stressed the company's preparedness to capitalize on AI Data Cycle trends with Flash and HDD products.
Forward Guidance
For the fiscal second quarter of 2025, Western Digital projects revenue between $4.20 billion and $4.40 billion, with Non-GAAP EPS expected to range from $1.75 to $2.05.
Stock Price Movement
Following the earnings announcement, Western Digital's stock experienced a 7.18% increase, indicating positive investor response likely due to the better-than-expected Non-GAAP EPS and optimistic future outlook.
Overall, Western Digital's earnings release underscores its commitment to technological innovation and market responsiveness, positioning itself strategically in the growing data storage industry, despite ongoing legal challenges.
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