Western Digital (WDC) Profit Slips 40% During Q4, Sales Flat
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Price: $582.59 +0.79%
EPS Growth %: +98.2%
Financial Fact:
Selling, general and administrative: 396M
Today's EPS Names:
CCEL, FEIM, PLG, More
EPS Growth %: +98.2%
Financial Fact:
Selling, general and administrative: 396M
Today's EPS Names:
CCEL, FEIM, PLG, More
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Shares of Western Digital (NYSE: WDC) were slammed nearly 8 percent Thursday as traders in the sector reacted to earnings and disappointing guidance last night from Seagate (NYSE: STX).
Now with its own quarterly report out after the close this evening, the stock is moving only modestly higher even with the sharp move lower earlier.
Western Digital issued fourth-quarter net revenue of $2.4 billion, nearly flat from the $2.38 billion posted during the same quarter last year.
Net income fell more than 40 percent from $265 million in the fourth quarter of 2010 to $158 million. GAAP EPS were 67 cents. Excluding expenses related to the planned acquisition of Hitachi Global Storage Tech and for unrelated litigation accruals, Western Digital saw net income of $193 million. On a per-share basis, non-GAAP earnings came to 81 cents.
The Street had been looking for quarterly EPS of 65 cents on sales of $2.26 billion.
John Coyne, President and CEO of Western Digital, said, "In the June quarter, we were able to meet stronger than anticipated demand, especially from our OEM customers,” said John Coyne, president and chief executive officer. “We believe the stronger demand was driven by increased use of sea freight in advance of the second half of the calendar year as well as supply continuity concerns in the aftermath of the Japan earthquake.
"In a challenging HDD market environment in fiscal 2011, the industry saw unit volume growth of four percent while [Western Digital] achieved growth of six percent as customers demonstrated a continued preference for the [Western Digital] value proposition."
The company generated $447 million in operating cash over the quarter; total cash and cash equivalents closed the quarter at $3.5 billion.
Now with its own quarterly report out after the close this evening, the stock is moving only modestly higher even with the sharp move lower earlier.
Western Digital issued fourth-quarter net revenue of $2.4 billion, nearly flat from the $2.38 billion posted during the same quarter last year.
Net income fell more than 40 percent from $265 million in the fourth quarter of 2010 to $158 million. GAAP EPS were 67 cents. Excluding expenses related to the planned acquisition of Hitachi Global Storage Tech and for unrelated litigation accruals, Western Digital saw net income of $193 million. On a per-share basis, non-GAAP earnings came to 81 cents.
The Street had been looking for quarterly EPS of 65 cents on sales of $2.26 billion.
John Coyne, President and CEO of Western Digital, said, "In the June quarter, we were able to meet stronger than anticipated demand, especially from our OEM customers,” said John Coyne, president and chief executive officer. “We believe the stronger demand was driven by increased use of sea freight in advance of the second half of the calendar year as well as supply continuity concerns in the aftermath of the Japan earthquake.
"In a challenging HDD market environment in fiscal 2011, the industry saw unit volume growth of four percent while [Western Digital] achieved growth of six percent as customers demonstrated a continued preference for the [Western Digital] value proposition."
The company generated $447 million in operating cash over the quarter; total cash and cash equivalents closed the quarter at $3.5 billion.
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