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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
WDC 55.41-2.0%Oct 15 4:00 PM EDT

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From: Sam8/4/2021 6:19:10 PM
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After getting sold immediately the release, the stock is now more or less flat AH. I didn't listen to the CC, so I don't have a clue about what is happening with it. I'll try to read a transcript later tonight or tomorrow. It looks like a great report at first glance!

Western Digital Stock Is Slipping. Earnings Were a Blowout. -- Barrons.com
DOW JONES & COMPANY, INC. 4:48 PM ET 8/4/2021

Symbol Last Price Change
64.94 -1.2 (-1.8143%)
QUOTES AS OF 04:00:00 PM ET 08/04/2021
Eric J. Savitz

Western Digital (WDC) stock is trading lower late Wednesday despite reporting better-than-expected results for the fiscal fourth quarter ended June 30, and providing strong guidance for the September quarter.

For the quarter, Western Digital(WDC) posted revenue of $4.9 billion, up 19% from a year ago, and well above the Street consensus forecast at $4.5 billion. The maker of disk drives and flash memory posted non-GAAP profits of $2.16 a share, ahead of the Street estimate for $1.49 a share, and up from $1.02 a share a year earlier. Under generally accepted accounting principles, the company earned $1.97 a share, up from 63 cents a year earlier. Non-GAAP gross margin expanded to 32.9%, from 27.7% a year earlier, on stronger pricing.

The company said client-devices revenue was up 13% from a year ago, and 8% sequentially, to $2.2 billion, driven by strong demand for notebook and desktop hard drives. Data-center devices' revenue totaled $1.8 billion, up 6% from a year ago and 44% higher than the March quarter, as enterprise demand picked up. Client solutions revenue was $977 million, up 42% from a year ago, and 10% sequentially, as add-on storage products sold through retail and other channels increased.

For the September quarter, Western Digital(WDC) sees revenue ranging from $4.9 billion to $5.1 billion, with non-GAAP profits of $2.25 to $2.55 a share, and non-GAAP gross margin increasing 33%-35%. Street consensus had called for $4.9 billon in revenue and profits of $2 a share.

"I am extremely proud of the outstanding execution our team exhibited as we achieved another quarter of strong revenue, gross margin and EPS results above expectations," CEO David Goeckeler said in a statement. "Throughout this fiscal year, we successfully delivered both flash and hard drive innovations that are essential building blocks in the acceleration of the data economy....We believe we have the right foundation for success -- the right products, the right customer base, and the unique ability to address two very large and growing markets."

In late trading, Western Digital(WDC) stock is off 2.3%, to $63.42.

Write to Eric J. Savitz at eric.savitz@barrons.com
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