Western Digital Corp., a leading data storage company, experienced a decline in stock value after revealing its quarterly results. The fiscal second-quarter report showed a net loss of $268 million, or 87 cents per share, compared to a net loss of $446 million, or $1.40 per share, during the same period last year. Adjusted earnings reflected a loss of 69 cents per share. Additionally, the company’s revenue decreased by 2% to $3.03 billion from $3.11 billion in the year-ago quarter.
Analysts surveyed by FactSet had expected a slightly higher net loss of $1.12 per share on revenue of $3 billion. However, Western Digital’s performance fell short of these expectations. As a result, the company’s stock declined by nearly 4% in after-hours trading on Thursday.
The data storage giant also provided its sales guidance for the upcoming quarter, anticipating a range between $3.2 billion to $3.4 billion. However, FactSet analysts have forecasted a lower figure of $3.15 billion. This lowered sales guidance may contribute to further uncertainty regarding the company’s future performance.
Despite these disappointing results, it is worth noting that Western Digital stock has experienced an impressive 38% increase over the past year. In comparison, the broader S&P 500 index has risen by 20.5%. This suggests that the company has the potential to rebound and regain its position in the market.
While Western Digital’s quarterly results may raise concerns among investors, it is important to consider the broader market context and the potential for future growth. The company will need to address its financial challenges and provide a clear strategy for overcoming them.
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