Benzinga - by Erica Kollmann, Benzinga Staff Writer.
Western Digital Corporation (NASDAQ:WDC) reported third-quarter financial results after the bell on Thursday. Here's a look at the highlights.
Western Digital reported earnings of 63 cents per share, which is not comparable to the consensus of 20 cents. It clocked quarterly sales of $3.46 billion, beating the $3.36 billion analyst consensus estimate.
Cloud revenue of $1.55 billion represented 45% of total revenue, with its growth primarily attributed to higher nearline shipments and improved nearline per unit pricing with flash revenue up both sequentially and year-over-year.
Client revenue of $1.17 billion represented 34% of total revenue. Sequentially, the increase in flash ASP more than offset a decline in flash bit shipments while HDD revenue decreased. The year-over-year increase was driven by growth in both flash and HDD ASPs and flash bit shipments.
Consumer revenue of $730 million represented 21% of total revenue. Sequentially, both flash and HDD were down at approximately similar rates and in line with seasonality. The year-over-year increase was driven by growth in flash bit shipments and ASP.
"As evidenced by our excellent third quarter results, Western Digital continues improving through-cycle profitability and dampening business cycles by leveraging our strategy of developing a diversified portfolio of industry-leading products across a broad range of end markets," said David Goeckeler, Western Digital CEO.
Outlook: Western Digital expects fourth-quarter earnings between 90 cents and $1.20 per share versus the 84 cents estimate. It forecasts fourth-quarter revenue of $3.6 billion to $3.8 billion versus the $3.69 billion estimate.
"We are in the early innings of unlocking the full potential of this company, and as industry supply and demand dynamics continue to improve, we will remain disciplined around our capital spending and focused on driving innovation and efficiency across our businesses," said Goeckeler.
Related News: S&P Global Reports Q1 Results, Raises Revenue Guidance
WDC Price Action: According to Benzinga Pro, Western Digital shares are down 1.07% after-hours at $68.70 at the time of publication Thursday.
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