SAN JOSE, Calif. – Western Digital Corp. (NASDAQ:WDC) reported its fiscal fourth quarter earnings, surpassing analyst expectations on earnings per share (EPS) but providing a weaker-than-expected outlook for the first quarter of 2025, which sent shares down 4% in response to the news.
For the fourth quarter, the company posted an adjusted EPS of $1.44, beating the analyst estimate of $1.16. Revenue reached $3.76 billion, slightly above the consensus estimate of $3.74 billion.
The company's cloud revenue saw a notable increase of 21% quarter over quarter (QoQ), while its client revenue grew by 3%. However, consumer revenue experienced a decline of 7% QoQ. Despite the mixed performance in different segments, the overall quarterly revenue represented a sequential rise of 9%.
Western Digital's CEO, David Goeckeler, attributed the quarter's success to the company's diversified portfolio and strategic initiatives.
"Our fourth quarter and fiscal year 2024 results are reflective of the diverse and innovative portfolio we have developed in alignment with our strategic roadmap," said Goeckeler. He also highlighted the transformative period within the industry driven by the AI Data Cycle, which he believes will increase the demand for storage.
Looking ahead, the company forecasted first quarter 2025 revenue to be between $4.00 billion and $4.20 billion, with a midpoint slightly below the analyst consensus of $4.23 billion.
The guidance for adjusted EPS is set at a range of $1.55 to $1.85, with the midpoint falling short of the consensus estimate of $1.76. The weaker outlook is the primary driver behind the stock's decline, as investors adjust their expectations following the company's projections.
Western Digital's full fiscal year 2024 saw a GAAP EPS of -$1.72 and an adjusted EPS of -$0.20. The company's results and guidance reflect the challenges and opportunities in the evolving tech landscape, with a particular focus on the growth potential in data storage driven by emerging technologies.
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