Western Digital CorporationNYSE
Western Digital, Misunderstood Merger With Significant Upside And Limited Downside
Alex Zhao, CFA • 40 Comments
Alex Zhao, CFA • 40 Comments
Tue, Oct. 11, 8:25 AM
- The company expects FQ1 revenue of $2.8B and GAAP and non-GAAP gross margin of about 28% - this versus previous guidance of at least $2.7B and 27%, and Street estimates for $2.74B.
- Expense measures continue to progress and operating expenses are expected to be $580M vs. $470M the previous quarter - mostly thanks to higher performance-based compensation. The company ended the quarter with about $1.5B of cash and cash equivalents on hand.
- STX +1.65% premarket; WDC +0.4%
Wed, Sep. 7, 3:00 PM
Wed, Sep. 7, 9:17 AM
Wed, Sep. 7, 7:28 AM| Wed, Sep. 7, 7:28 AM | 13 Comments
Thu, Aug. 25, 12:45 PM
- HP reported Q3 results yesterday and on its earnings call, CEO Dion Weisler noted "some shortages, particularly around LCDs, DRAM and Flash memory."
- Susquehanna analyst Mehdi Hosseini notes potential resulting favorability for Micron Technology (MU +6%), Western Digital (WDC +3%) and Corning (GLW +0.4%). The firm upgraded Micron to a Positive rating and $18 price target ($16.45 current price) in late June.
Thu, Aug. 4, 12:02 AM
Wed, Aug. 3, 10:50 AM
- Goldman Sachs downgrades Western Digital (WDC -0.3%) from Neutral to Sell. Price target lowered to $38 from $47 (current price $44.91), implying around 15% downside from the current level.
- From Goldman Sachs analyst Mark Delaney: "To the extent the stock trades higher on short-term events, we would use it as an opportunity to sell the stock given risks that we believe could pressure WD's business in the next few years. We expect HDD [hard disk drives] sales to decline secularly."
- Western Digital reported a $351M net loss and cited acquisition expense pressures in its Q4 report last Friday.
Fri, Jul. 29, 3:00 PM
Fri, Jul. 29, 10:53 AM
- Though beating expectations with 9.4% Y/Y revenue growth, Western Digital (WDC -9.9%) is not even three months removed from its acquisition of SanDisk and is seeing heavy operating expenses as a result.
- CEO Steve Milligan noted FY 16 as a "transformative year". He also commented on moving past an acquisition stage and into an execution phase.
- FY 16 revenue is $13B with net income of $257M vs. FY 15 revenue of $14.6B and $1.5B in net income.
- The company provided September quarter guidance for revenue of $4.4B-$4.5B, gross margin of around 32%, operating expenses of approximately $875M, interest and other expenses of around $245M, tax expense of $50M, share count of 290M and EPS of $0.85-$0.90.
- Press release
- Earnings call transcript
Thu, Jul. 28, 4:17 PM
Wed, Jul. 27, 5:35 PM
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Tue, Jul. 19, 3:39 AM
- Scientists reveal method for storing rewritable digital data at record density.
- Involves rearranging individual chlorine atoms on a sheet of copper.
- Provides roughly 100x more data per square inch than the world's most efficient hard drive.
- Could write the entire contents of the Library of Congress in a space smaller than a dust mite.
- Key challenge is speed.
- Source links: Nature, Popular Mechanics
- Also see Richard Feynman's There's Plenty of Room at the Bottom lecture
- Disk drive stocks: OTCPK:CBEX, EMC, HILL, HTCH, IBM, IMN, IVAC, NTAP, QBAK, SXCL, SMIT, STX, VECO, WDC
Thu, Jul. 7, 11:05 AM
- A boost in guidance from Western Digital (WDC +4.1%) is helping to lift some other chip stocks.
- The strong read-through on NAND chip sales have stoked some buying action on Micron (MU +5.1%), Seagate Technology (STX +1.7%), and Applied Materials (AMAT +1.2%) on optimism that NAND pricing will hold up in the second half of the year.
- Previously: Western Digital higher after hours on lift in guidance; CFO to exit (July 6)
Thu, Jul. 7, 9:16 AM
Wed, Jul. 6, 5:39 PM
Wed, Jul. 6, 4:25 PM
- CFO Olivier Leonetti is leaving the company, effective Sept 1, to pursue other opportunities. Current EVP, finance, and Chief Strategy Officer Mark Long will take over his duties.
- Reflecting the ownership of SanDisk, WDC now expects FQ4 revenue to be about $3.46B, up from an earlier forecast of $3.35-$3.45B. Q4 EPS is seen at $0.72 vs. previous $0.65-$0.70. Non-GAAP gross margin is expected at 31%, flat from previous guidance.
- Shares +4.5% after hours