Western Digital (WDC) Boosts Q1 Outlook
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Western Digital Corp. (NASDAQ: WDC) updated its expectations for the first fiscal quarter of 2017 ending Sept. 30, 2016. Following the recent acquisition of SanDisk and the continued progress in integrating its WD and HGST subsidiaries, the company is addressing a larger number of customers with a broader portfolio of hard drive and flash storage products, leading to a better-than-expected product mix.
Enabled by ongoing strong execution, the company now expects its first quarter revenue to be in the range of $4.45 billion to $4.55 billion compared to its earlier forecast of $4.4 billion to $4.5 billion. Non-GAAP gross margin is expected to be approximately 33%, versus the earlier forecast of 32%, due to the improved mix and pricing. Non-GAAP operating expenses are expected to be approximately $905 million, versus the earlier forecast of $875 million, reflecting higher incentive compensation due to the stronger business performance. Net interest expense is forecasted to be lower than previously expected due to the recently completed re-pricing of the company’s U.S. Term Loan B debt. The company now expects first quarter EPS, on a non-GAAP basis to be in the range of $1.00 to $1.05, compared with its earlier forecast range of $0.85 to $0.90. The company will report its full results for the first fiscal quarter in late October.
*** The Street sees Q1 revenue of $4.45 billion and EPS of $0.90.
The company also announced that Mike Cordano, president and chief operating officer and Mark Long, executive vice president, chief financial and strategy officer will participate at the 2016 Citi Global Technology Conference. The fireside chat session at the conference will be available on live webcast starting at 7:15 a.m. Pacific / 10:15 a.m. Eastern time today on the company’s Investor Relations home page at investor.wdc.com. A webcast replay of the event will also be made available later today.
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