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   Technology StocksWDC, NAND, NVM, enterprise storage systems, etc.


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From: Sam8/4/2021 6:19:10 PM
   of 4711
 
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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To: Sam who wrote (4684)8/4/2021 8:05:42 PM
From: Sam
   of 4711
 
Whoops--
"After getting sold immediately *after* the release..."

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To: Sam who wrote (4684)8/4/2021 8:16:30 PM
From: Elroy
   of 4711
 
It looks like a great report at first glance!

Why?

Annual sales were up 1%.

In the current goldilocks environment, how is this a great report?

I compare to SIMO's Q2, which was up ~65% over last year, and up 20% sequentially, and SIMO's 2021 sales will be up more than 70% over last year.....why are the WDC numbers anything even interesting?

Gross margins are 33% non-Gaap. Is that great?

Operating cash flow was $1.9 billion for the fiscal year. What was Cap Ex?

Sales are forecast to go up about 4% next quarter. Next quarter is the big daddy Q3. Is that up 4% great?

Is WDC gaining share on competition, or what's the great story?

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To: Elroy who wrote (4686)8/4/2021 8:32:49 PM
From: Sam
2 Recommendations   of 4711
 
You are comparing a company that just made $221m of revenue for their quarter with a company that made $4.9b. Although one is a customer of the other, they nonetheless are completely different companies in different sectors that have different characteristics. I haven't read or listened to the CC yet, my comment was based entirely on the article I posted and the fact that they handily beat expectations.

Why do you seem to have a hard on for WDC? Do you go around to other boards and compare SIMO with those stocks as well? It is bizarre.

You really should cut it out. I banned you once for doing this and I will ban you again if you keep doing this.

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To: Sam who wrote (4687)8/4/2021 8:41:08 PM
From: Elroy
   of 4711
 
I'm just curious why WDC's results are "good".

1% annual sales growth seem (to me) bad. In fact, it stinks.

If you think WDC's recent results are good, SIMO's recent results are Godlike. And SIMO is cheaper on valuation than WDC.

WDC is not the leader in a highly competitive industry.
SIMO is the leader in a segment without much competition left.

WDC has massive Cap Ex needs every year.

SIMO has almost zero Cap Ex needs every year.

Yeah, I don't have to compare WDC to SIMO. But in comparing financial numbers, one crushes the other, so I'm curious why many here like the one with the much worse numbers, that's all.

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From: Elroy8/4/2021 8:52:02 PM
   of 4711
 
WDC the articles and comments I'm reading say it was a really great quarter, and they handily beat expectations.

I don't follow WDC, but the sales numbers don't say the same thing. They did $4.9 billion last quarter, and expect to do $4.9 - $5.1 billion in the upcoming seasonally strong Q3. So they expect to grow sales about 2% sequentially, give or take 2%.

That stinks, doesn't it?

The tech markets are booming, NAND is booming, no one can get enough product made, prices are rising, and we're coming into the best quarter of the year.

And WDC is going to grow sales by 2%?

I remain curious how this is positive news.

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To: Elroy who wrote (4688)8/4/2021 9:04:26 PM
From: Sam
1 Recommendation   of 4711
 
I think that the fact that there has been little discussion on the board implies that most of us are not all that enamored of WDC.

Nonetheless, the comparison of SIMO to them is a little nuts. They are completely different companies. Different sectors with different characteristics and different challenges.

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To: Elroy who wrote (4688)8/4/2021 9:57:56 PM
From: SiliconAlley
   of 4711
 
WDC has massive Cap Ex needs every year.

You appear to lack a basic understanding of how their Cap Ex is funded, why earnings do not tell the whole story, and why their true margins far exceed that stated in the financials.

Fiscal Year 2021 free cash flow was $1.1B, Last I checked, that exceeds the total revenue of the company you continue to pump. I would respectfully request that you take your pumping to the Yahoo boards.

As for your mantra of "hard drives are dead," the conference call clearly states otherwise.

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To: Sam who wrote (4690)8/4/2021 10:03:24 PM
From: Elroy
   of 4711
 
Nonetheless, the comparison of SIMO to them is a little nuts

It's not that they are similar companies, I'm comparing stellar financial numbers (SIMO) with with fairly average if not disappointing average financial numbers (WDC).

The articles I've read all indicate WDC's Q2 was really good. I'm wondering why the article's authors write this/ Perhaps it's just a comparison of actual results to even worse guidance, I don't know.

Someone indicated WDC may have EPS of $10 over the next four quarters. If that's accurate, then yes, it's pretty cheap, at least we can say that.

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To: Elroy who wrote (4692)8/5/2021 2:38:54 PM
From: SiliconAlley
   of 4711
 
I'm comparing stellar financial numbers (SIMO) with with fairly average if not disappointing average financial numbers (WDC).

I assume you meant to say that WDC had the superior financial numbers with $2.16 per share non-GAAP earnings versus $1.50 for the inferior company. That is 44% better performance.

$20B in revenue ain't too shabby for a company you refer to as mediocre. That's what, 40 times the revenue of that pimple on a giraffe's butt?

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