In Q3 earnings, Western Digital soundly beats estimates

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.
Written by Andrew Nusca, Contributor

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.

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."

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