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Western Digital (WDC) -2.1% AH after warning it expects FQ1 (ends Sep. 28) revenue of $3.9B-$4B,...

Western Digital (WDC) -2.1% AH after warning it expects FQ1 (ends Sep. 28) revenue of $3.9B-$4B, below prior guidance of $4.2B-$4.3B and a consensus of $4.33B. The company also forecasts the hard drive market will total 140M units in the quarter vs. prior guidance of 157M, no doubt due to poor PC demand. WDC is softening the blow by establishing a $0.25/share quarterly dividend (2.4% yield), and boosting its stock buyback program by $1.5B. STX -2.4%. LSI and MRVL down slightly.
Comments (3)
  • Stone Fox Capital
    , contributor
    Comments (5935) | Send Message
     
    Sounds like somebody needs an SSD company... OCZ
    13 Sep 2012, 06:50 PM Reply Like
  • megaboz
    , contributor
    Comments (25) | Send Message
     
    The last share buyback program still has $1.2B to go, so that is a total of $2.7B in share buybacks currently authorized, or about 25% of the current market cap. It doesn't sound like WDC right now is focused on an acquisition. Their target is to return 50% of FCF to shareholders via stock buybacks and dividends.

     

    During the investor day presentation they did say they are seeing weakness in the consumer market, Europe and China; no weakness in commercial market particularly the U.S. I think that pretty much matches up with where you are seeing economic weakness, so the TAM revision is probably more to do with that than with SSDs stealing market share.
    13 Sep 2012, 07:40 PM Reply Like
  • Maria Auziliadora
    , contributor
    Comments (628) | Send Message
     
    MRVL is a deal right now
    20 Sep 2012, 05:23 AM Reply Like
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