Western Digital Reports 45% Revenue Growth and Dividend Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Fool
Western Digital Corp's stock rose by 3.05% as it reached a 52-week high.
The company reported a significant revenue growth of 45% year-over-year for its fiscal third quarter, totaling $3.34 billion, which is a notable increase from the previous quarter's 25%. Additionally, the non-GAAP gross margin exceeded 50% for the first time, reaching 50.5%, reflecting effective cost management. The board also approved a 20% increase in the quarterly cash dividend to $0.15 per share, showcasing confidence in future growth. Management anticipates fourth-quarter revenue of approximately $3.65 billion, indicating strong demand driven by AI-related storage needs.
This impressive performance highlights Western Digital's strong position in the data storage market, driven by increasing demand for AI-related solutions, and suggests a positive outlook for the company's future growth.
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Analyst Views on WDC
Wall Street analysts forecast WDC stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 531.180
Low
135.00
Averages
189.74
High
250.00
Current: 531.180
Low
135.00
Averages
189.74
High
250.00
About WDC
Western Digital Corporation is a developer, manufacturer and provider of data storage devices and solutions on hard disk drives (HDD) technologies. The Company manufactures, markets, and sells data storage devices and solutions through its sales personnel, dealers, distributors, retailers, and subsidiaries. Its portfolio of technology and products addresses end markets: Cloud, Client, and Consumer. Cloud is comprised primarily of products for public or private cloud environments and enterprise customers. Through the Client end market, the Company provides its original equipment manufacturer (OEM) and channel customers with a broad array of high-performance HDD solutions across desktops and notebooks. The Consumer end market offers a range of retail and other end-user products. Its product portfolio includes Internal HDD, Data Center Drives, Data Center Platforms, External Drives, Portable Drives, network-attached storage (NAS) for Home and Office, and Accessories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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