Western Digital, a prominent data-storage company, has reported a narrower loss in its fiscal second quarter, despite a slight decline in revenue. The company disclosed a loss of $268 million, or 87 cents per share, for the three-month period ending on December 29. This is a significant improvement compared to the same quarter the previous year when the loss amounted to $446 million, or $1.40 per share.
When excluding one-time charges, the adjusted loss for the quarter was 69 cents per share, surpassing analyst expectations. Analysts surveyed by FactSet projected an adjusted loss of $1.12 per share. Although revenue experienced a 2% decline to $3.03 billion, it still exceeded analyst forecasts of $3 billion, according to FactSet.
Western Digital witnessed a drop of 13% in cloud revenue. On the other hand, client revenue increased by 3% and consumer revenue had a substantial jump of 6%.
For the upcoming fiscal third quarter, Western Digital anticipates revenue ranging from $3.2 billion to $3.4 billion. This projection surpasses current analyst estimates of $3.15 billion. Furthermore, the company expects to post an adjusted loss of up to 10 cents per share or achieve adjusted earnings as high as 20 cents per share. Conversely, analysts surveyed by FactSet currently predict an adjusted loss of 31 cents per share.
Western Digital’s results in the second quarter reflect the company’s efforts to mitigate its losses and regain financial stability. Despite the challenges faced in the cloud segment, the growth in client and consumer revenues suggests potential opportunities for the company’s future success.
The source of the article is from the blog guambia.com.uy