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Western Digital Corporation (WDC)

  • Jun. 28, 2013, 2:48 PM
    The PC industry kept struggling in Q2 following a 13% Y/Y shipment drop in Q1, says IDC. The firm thinks shipment growth improved a bit in April in Latin America and EMEA, but it adds "May growth has come in slower than April" for most top markets, which could lead Q2 shipments to be even worse than a May forecast for an 11.7% Y/Y drop. The industry is counting on the new form factors and battery life improvements enabled by Intel's Haswell CPUs, and the changes provided by Windows 8.1 to appease those unhappy with Windows 8, to get demand to stabilize. Companies in the crosshairs: MSFT, INTC, AMD, NVDA, MU, STX, WDC, DELL, HPQ.
    | Jun. 28, 2013, 2:48 PM | 6 Comments
  • Jun. 27, 2013, 1:46 PM
    More on Longbow's upgrades of Seagate (STX +5%) and Western Digital (WDC +3.9%): Analyst Joseph Wittine thinks hard drive shipment volumes bottomed in 1H, believes pricing has been "relatively stable," and sees higher-margin enterprise (cloud-driven) and company-branded drive sales offsetting PC weakness. He adds "non-PC HDD sales are now eclipsing PC HDD sales for WD and Seagate," and considers shares undervalued based on respective forward free cash flow forecasts of $2.1B and $2B. Also: In spite of the popularity of flash memory in cloud deployments, Wittine estimates ~75% of cloud storage will still be HDD-based. (Deutsche's upgrades) (Jim Chanos)
    | Jun. 27, 2013, 1:46 PM | Comment!
  • Jun. 27, 2013, 9:59 AM
    A roundup of tech ratings changes: 1) BNP Paribas has started Baidu (BIDU +1.6%) at Buy. 2) Longbow has upgraded Seagate (STX +4.1%) and Western Digital (WDC +2.9%) to Buy. 3) Pac Crest has started Synchronoss (SNCR +2.9%) at Outperform. 4) Lazard has upgraded Trimble (TRMB +2.5%) to Buy. 5) BMO and RBC have downgraded Rogers (RCI -1.9%) to Market Perform/Sector Perform, and BMO has also downgraded Telus (TU -2.4%) to Market Perform. However, Stifel has upgraded Telus to Buy. (yesterday). 6) HSBC has upgraded Sohu (SOHU +3.8%) to Neutral. 7) China Mobile (CHL +1.7%) has been upgraded to Neutral by BofA/Merrill. 8) Atmel (ATML +1.4%) has been upgraded to Buy by Lazard. 9) Flir Systems (FLIR +2.1%) has been upgraded to Overweight by Stephens.
    | Jun. 27, 2013, 9:59 AM | Comment!
  • Jun. 24, 2013, 2:39 PM
    Western Digital's (WDC -2%) acquisition of sTec is a "smart move," says Lazard's Edward Parker: he notes sTec's SSDs offer best-in-class endurance, which should go over well with WDC's OEM and enterprise clients, and that WDC is only paying 1.5x 2013 sales, a multiple well below that seen in peer acquisitions. RBC, however, points out sTec has been plagued by management/execution issues (a big reason for the price tag), and JPMorgan sees the deal as evidence of the long-term threat SSDs pose to hard drive sales. Will Seagate (STX -2%), which has been busy expanding its consumer and enterprise SSD lineups, respond with a purchase of its own?
    | Jun. 24, 2013, 2:39 PM | Comment!
  • Jun. 24, 2013, 8:06 AM
    Western Digital (WDC) buys STEC (STEC) for $6.85 per share in a deal with an enterprise value of close to $207M. The deal to acquire the solid-state drive maker is expected to close in Q4.
    | Jun. 24, 2013, 8:06 AM | Comment!
  • May 28, 2013, 2:08 PM
    Western Digital (WDC +0.8%) is hoping its new Se hard drives will find their way into Google, Facebook, and Amazon's data centers (among others). Meant for NAS storage systems and (more importantly) "scale-out" data centers (they typically feature thousands of cheap, densely-packed, energy-efficient servers), Se drives features many high-reliability and high-performance features associated with enterprise drives, but cost just $160-$310. Web/cloud services firms have avidly embraced scale-out architectures, and are accounting for a growing chunk of server sales. The announcement comes as IDC forecasts PC shipments will fall 7.8% this year.
    | May 28, 2013, 2:08 PM | Comment!
  • May 23, 2013, 8:19 AM
    Deutsche Bank's Sherri Scribner (who likes the HDD space) upgrades Seagate Technology (STX) to Buy from Hold and raises the price target on it ($46 from $40) and shares of Western Digital (WDC). She says outperformance stemming from "the impact of the Thailand floods, which reset pricing and profitability higher" and industry consolidation will continue to benefit the two companies which Jim Chanos recently called value traps (STX is his favorite short). Meanwhile, SA contributor Sneha Shah also likes the industry consolidation thesis. (See also: Lazard's PT boost for WDC) STX +.85% premarket.
    | May 23, 2013, 8:19 AM | 4 Comments
  • May 16, 2013, 5:08 PM
    Western Digital (WDC) declares $0.25/share quarterly dividend, in line with previous. Forward yield 1.68%. For shareholders of record June 28. Payable July 15. Ex-div date June 26. (PR)
    | May 16, 2013, 5:08 PM | Comment!
  • May 9, 2013, 10:00 AM
    Seagate (STX -3.6%) and Western Digital (WDC -1.8%) slump after Jim Chanos calls the hard drive makers value traps at the Sohn conference. Chanos, who was bearish on Dell before the bottom fell out of its PC business, calls the hard drive industry "PC with a year lag." "Most people have way too much storage as it is on their laptops and desktops," he adds. Seagate is Chanos' favorite short - he cites margin pressure, accounting issues (Chanos thinks $1B of goodwill from the Samsung deal could mask cash flow issues), and insider selling.
    | May 9, 2013, 10:00 AM | 15 Comments
  • May 4, 2013, 3:52 PM
    Barron's is out with its list of the 500 financially strongest companies as ranked after a rigorous cash and sales analysis. A quick filter on the list shows a good chunk of the names trade with a single-digit price to earnings ratio including Goodyear Tire & Rubber (GT). Despite all the buzz about booming auto sales in the U.S. and China, concerns about growth for Goodyear's products in other regions of the globe have lowered expectations. But with auto sale estimates for full-year being taken higher, Goodyear could see enough consistent revenue growth to justify a higher trading multiple. (Top 25: AAPL, WCC, WDC, DVA, CHRW, QCOM, JOY, V, STX, MRC, MA, CVI, COF, SYMC, MCK, WCG, ETN, BRCM, TMO, CI, CBI, NOV, WNR, HFC, DK)
    | May 4, 2013, 3:52 PM | 39 Comments
  • May 1, 2013, 6:45 PM
    Seagate (STX) +4.8% AH after guiding on its FQ3 call for FQ4 revenue of $3.3B-$3.45B, in-line with a $3.35B consensus and easing PC-related concerns. Western Digital (WDC) +1.6%. In prepared remarks, Seagate estimates the hard drive industry saw 136M shipments in FQ3, nearly even with the 135.4M estimated by WDC. Seagate pegs its share at 41%, down from FQ2's 43%; WDC claims its share rose 80 bps Q/Q to 44.4%. High-margin enterprise drive sales rose 3% Q/Q to 7.5M (boosted by Web/cloud storage); PC drives -7% to 36.6M, "non-compute" drives down slightly to 11.6M. Gross margin was flat Q/Q at 27.6%. (slides)
    | May 1, 2013, 6:45 PM | Comment!
  • Apr. 24, 2013, 5:39 PM
    Western Digital (WDC) guides for FQ4 revenue of $3.55B-$3.65B and EPS of $1.65-$1.80, in-line with a consensus of $3.58B and $1.74. That, along with a strong FQ3 beat, is going over well in light of huge PC-related fears. WDC +3.7% AH. STX +1.3%. LSI +2.2%. WDC estimates the total market for hard drives in FQ3 was 135.4M, down just slightly from FQ2's 135.8M. The company pegs its FQ3 share at 44.4%, up from FQ2's 43.6%. Gross margin rose 50 bps Q/Q (while falling 400 bps Y/Y) to 28.2%, and $243M worth of shares were repurchased. (fact sheet) (PR)
    | Apr. 24, 2013, 5:39 PM | Comment!
  • Apr. 24, 2013, 4:17 PM
    Western Digital (WDC): FQ3 EPS of $2.1 beats by $0.34. Revenue of $3.8B beats by $0.19B. Shares +2.5% AH. (PR)
    | Apr. 24, 2013, 4:17 PM | Comment!
  • Apr. 23, 2013, 10:20 AM
    Storage/hard drive stocks are outperforming, possibly aided by Veeco's Q1 bookings numbers: the company reported hard drive equipment bookings totaled $27M, down 7% Y/Y but up 60% Q/Q in spite of slumping PC demand. Veeco added on its CC (transcript) hard drive customers are "starting to make selective technology buy decisions" once more. STX +2.6%. WDC +2.6%. EMC +1.8%. NTAP +2.7%. XRTX +1.6%. QTM +5.1%. EMC reports tomorrow morning. Also, LED/solar equipment makers Aixtron (AIXG +9%) and GT Advanced (GTAT +2.7%) are getting a lift from Veeco's numbers and bullish Q2 commentary.
    | Apr. 23, 2013, 10:20 AM | 2 Comments
  • Apr. 17, 2013, 11:54 AM
    H-P (HPQ -2.1%), Seagate (STX -2.6%), and Western Digital (WDC -2.8%) underperform after UBS' Maynard Um argues Intel's (INTC -1.3%) Q1 report backs up his thesis that "PC pricing needs to come down ... to entice upgrades." Um thinks this will lead to margin pressure for OEMs, and an unfavorable mix shift for hard drive vendors. He also notes H-P/Dell might not benefit from Intel's server CPU strength, since it's fueled by cloud buyers who often rely on white-label gear. Also: Paul Otellini stated on Intel's Q1 call he expects Window 8 (MSFT) touch devices (7" tablets?) using Intel's upcoming Bay Trail Atom CPU to eventually sport ~$200 price points.
    | Apr. 17, 2013, 11:54 AM | 3 Comments
  • Apr. 11, 2013, 8:24 AM
    In addition to the fall in Microsoft's shares, companies exposed to the PC market drop further after IDC said yesterday that global computer shipments slid 13.9% in Q1. H-P HPQ -5.2%, Lenovo (LNVGY.PK) -5.8% in Hong Kong, Intel (INTC) -2.3%, AMD -2.7%, Nvidia (NVDA) -2.1%, Seagate (STX) -1.85%, Western Digital (WDC) -1.3%. (previous)
    | Apr. 11, 2013, 8:24 AM | 6 Comments
Company Description
Western Digital Corp is a developer, manufacturer and provider of data storage solutions that enable consumers, businesses, governments & other organizations to create, manage, experience & preserve digital content. Its products include HDDs and SSDs.
Sector: Technology
Country: United States