- Western Digital‘s adjusted earnings per share (EPS) for the second quarter is $1.77, matching expectations, and a significant improvement from a loss of 69 cents per share year-over-year.
- Net revenue for the quarter is reported at $4.29 billion, a 41% increase from the previous year and slightly above the estimate of $4.26 billion.
- The company’s adjusted gross margin stands at 35.9%, a considerable jump from 15.5% year-over-year, though slightly below the estimate of 37.4%.
- Operating expenses have decreased by 5.4% year-over-year to $664 million, considerably lower than the estimated $836 million.
- The inventory level is $3.42 billion, which is a 6.3% increase compared to last year, coming in just under the estimate of $3.45 billion.
- Free cash flow has improved significantly to $335 million, compared to a negative cash flow of $176 million the previous year. This, however, falls short of the estimated $692.1 million.
- The company anticipates fiscal third quarter 2025 revenue to be between $3.75 billion and $3.95 billion.
- Western Digital attributes its strong performance to success in the HDD segment and strategic management of the Flash business, positioning for growth driven by the AI data cycle.
- The company receives strong investor confidence with 19 buy ratings, 8 hold ratings, and no sell ratings.
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Western Digital on Smartkarma
Analysts at Baptista Research on Smartkarma are upbeat about Western Digital Corporation’s performance. In their recent report titled “Western Digital Corporation: How Are They Dealing With Market Dynamics & Benefiting From Economic Tailwinds! – Major Drivers,” they highlighted a mix of achievements and strategic initiatives. The company’s Fourth Quarter and Fiscal 2024 Earnings were impressive, with revenues hitting $3.8 billion for the quarter and $13 billion for the year. Non-GAAP gross margin was reported at a solid 36.3%, and earnings per share stood at $1.44, showcasing the operational resilience of the company.
The analysts’ positive sentiment towards Western Digital indicates confidence in the company’s ability to navigate market dynamics and capitalize on economic tailwinds. Their detailed insights provide investors with valuable information to assess the company’s performance and potential for future growth.
A look at Western Digital Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Western Digital Corporation, a global leader in digital storage solutions, holds a mixed bag of Smartkarma Smart Scores. With a Value score of 3, the company is deemed fairly valued in the market. However, it falls short in the Dividend and Growth categories, scoring a 1 and 2, respectively. This suggests that investors looking for high dividend yields or rapid growth may need to look elsewhere. On the bright side, Western Digital scores a respectable 3 in both Resilience and Momentum, indicating moderate stability and positive market momentum.
Overall, Western Digital‘s Smartkarma Smart Scores paint a picture of a company with solid value and resilience, supported by decent market momentum. However, its lower scores in the Dividend and Growth categories suggest that investors seeking income or substantial growth opportunities may want to approach with caution. As a global provider of digital content solutions, including storage and network products, Western Digital‘s strategic position in the market remains noteworthy despite the mixed outlook portrayed by the Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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