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

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.

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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.

Image: Western Digital
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