In Q3 earnings, Western Digital soundly beats estimates

In Q3 earnings, Western Digital soundly beats estimates

Summary: A big win on earnings per share and a smaller one on revenue amount to good news for the U.S. storage maker. A look at the numbers.

SHARE:
TOPICS: Storage
0
western-digital-logo-400px

U.S. storage manufacturer Western Digital posted earnings per share of $2.10 on revenue of $3.8 billion in its results for the fiscal third quarter of 2013, soundly beating analyst expectations of earnings per share of $1.76 on revenue of $3.61 billion.

The company's shares were up 2.5 percent in after-hours trading.

The main highlight for the quarter: hard drive shipments of 60.2 million, a big boost over the 44.2 million it shipped in the same quarter a year ago. The company saw "strength" in its enterprise business, stability in its client and consumer electronics business and "anticipated seasonal softness" in its Branded Products group.

Numbers of note:

  • Net income for the third quarter of 2013 was $391 million, or $1.60 per share; a year ago, it was $483 million, or $1.96 per share.
  • The company generated $727 million in cash from operations during the quarter.
  • The company ended the quarter with cash and equivalents totaling $4.1 billion.
western-digital-3q13-earnings-chart01

During the quarter, Western Digital used $243 million to buy back 5.2 million shares of common stock; it also issued a $0.25 per share dividend.

"We continue to capitalize on the secular growth of digital data," CEO Steve Milligan said in prepared remarks. "Overall industry demand was in line with our expectations."

western-digital-3q13-earnings-charts0203

Topic: Storage

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

0 comments
Log in or register to start the discussion