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Western Digital beats market expectations for Q2 with record revenue

The hard disk drive and memory chip maker saw record revenue of $5.3 billion, thanks to solid demand for enterprise and NAND based products.
Written by Jake Smith, Contributor on

Western Digital reported its second quarter financial results on Thursday, beating market expectations thanks to a "healthy" demand in enterprise storage and NAND flash.

The company reported a net loss of $823 million, or $2.78 a share. Non-GAAP earnings were $3.95 per share on revenue of $5.3 billion, up from $4.9 billion from a year ago. The company said the net loss was due to a $1.6 billion repatriation tax as a result of the Tax Cuts and Jobs Act.

Wall Street was looking for earnings of $3.79 a share on revenue of $5.29 billion.

"We continued our strong financial performance in the December quarter, with nine percent year-over-year revenue growth, driven by each of our major end-market categories and solid execution by our team," Steve Milligan, CEO of Western Digital, said in a statement. "We once again generated strong operating cash flow, reflecting continued healthy demand in our end markets, most notably for our capacity enterprise hard drives and flash-based products.

See also: Toshiba and Western Digital put lawyers away and proceed with Toshiba Memory sale

Western Digital said it generated approximately $1.2 billion in cash from operations during the second quarter. It ended the quarter with $6.4 billion total cash, cash equivalents and available-for-sale securities.

For Q3, Western Digital told Wall Street it expects revenue of $4.9 billion and Non-GAAP earnings of $3.20 - $3.30 per share.

Shares of Western Digital fell roughly four percent in after hours trading Thursday.

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Image: Western Digital
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