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Western Digital Corporation (WDC)

  • Jul. 24, 2013, 5:44 PM
    Western Digital (WDC) guides on its FQ4 call for FQ1 revenue of $3.7B-$3.8B and EPS of $1.95-$2.05, largely unfavorable to a consensus of $3.77B and $2.05. Shares now -5.9% AH. Seagate (STX) -2.1% in sympathy. In its quarterly fact sheet, WDC states its total hard drive shipments fell 16% Y/Y in FQ4 to 59.9M, as 27% and 24% drops in notebook and desktop drive shipments (over 2/3 of total shipments) offset consumer electronics and branded drive growth, and roughly flat enterprise shipments. WDC and STX both fell in regular trading thanks to Seagate's numbers (I, II, III).
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  • Jul. 24, 2013, 4:17 PM
    Western Digital (WDC): FQ4 EPS of $1.96 beats by $0.17. Revenue of $3.7B beats by $0.08B. (PR)
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  • Jul. 24, 2013, 10:57 AM
    Seagate (STX -8.7%) has guided on its CC for FQ1 revenue of $3.5B-$3.6B, in-line with a $3.56 consensus. Needham is pleased, and is reiterating Buys on Seagate and Western Digital (WDC -1.9%).  But as SA commenter alph124 observes, Seagate's declining cash flow in the face of slumping PC drive shipments has some investors worried. FQ4 free cash flow totaled $266M, well below net income of $447M, and operating cash flow fell to just $394M from $1.4B a year ago. Seagate has issued a new $2.5B buyback authorization, raising its available funds to $3.3B. But unless Seagate's buyback pace picks up, it'll be a while before those funds are use up. (Seagate's FQ4: I, II)
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  • Jul. 24, 2013, 9:51 AM
    Seagate (STX -5.4%) opens lower following its FQ4 report, and takes Western Digital (WDC -1.2%) down with it. Gross margin was 28%, +40 bps Q/Q and -560 bps Y/Y. PC drive shipments -5% Q/Q and -25% Y/Y to 34.7M. Client Non-Compute (consumer electronics, removable storage, etc.) -6% Q/Q and -3% Y/Y to 10.9M, and high-margin Enterprise Storage +9% Q/Q and -4% Y/Y to 8.2M (3.7M mission-critical drives, 4.5M near-line storage). Only $42M was spent on buybacks, down from $102M in FQ3. Average GB/drive was at 855, up from 842 in FQ3 and 692 in the year-ago period. Retail made up 11% of sales, up from 7% a year ago. (PR) (slides) (CFO comments)
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  • Jul. 22, 2013, 2:02 PM
    A Minnesota court rules a $630M arbitration award granted to Seagate (STX -0.8%) in a dispute with Western Digital (WDC +0.9%) over the alleged theft of trade secrets by an ex-Seagate employee be confirmed. A court had vacated the award last October. Both Seagate and Western Digital's June quarter reports arrive on Thursday.
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  • Jul. 20, 2013, 8:15 AM
    With the major averages edging towards pricey territory, Andrew Bary of Barron's screens the S&P 500 for stocks trading at single-digit multiples, then narrows the list to those whose prospects can be argued to be good. The names are all familiar ones, but their presence on the list may surprise: VLO, MPC, HPQ, FCX, ESV, PSX, GM, MET, WDC, PRU, APA, JPM, C, DE, AAPL.
  • Jul. 19, 2013, 11:16 AM
    Citi upgrades Seagate (STX +0.6%) and Western Digital (WDC +0.2%) to Neutral, and in doing so lets the hard drive makers avoid the general selloff taking place in PC-exposed names following Microsoft's FQ4 miss, which was accompanied by poor Windows OEM sales figures and guidance. Citi downgraded STX and WDC to Sell on Oct. 12, 2012; they've had a good run since.
  • Jul. 10, 2013, 4:29 PM
    Global PC shipments fell 10.9% Y/Y in Q2 to 76M, estimates Gartner. That's nearly even with the 11.2% drop the firm estimated for Q1, and backs up recent analyst commentary (I, II). Gartner: "In emerging markets, inexpensive tablets have become the first computing device for many people." One bright spot: U.S. shipments fell only 1.4% Y/Y, and rose 8.5% Q/Q; Gartner thinks this was due to enterprise strength. EMEA shipments -16.8%, Asia-Pac -11.5%. Affected companies: MSFT, INTC, DELL, HPQ, STX, WDC, MU, AMD, NVDA. (IDC's Q1 data) (tablet forecast) Update: IDC estimates global Q2 shipments fell 11.4%, and U.S. shipments 1.9%.
  • Jul. 10, 2013, 10:15 AM
    Western Digital (WDC +0.6%) follows up on the sTec purchase by acquiring VeloBit, a developer of server-based SSD caching software that improves I/O performance for databases and enterprise applications. VeloBit's software, which has received good reviews, will be integrated with WDC's SSDs, presumably including sTec's. Deal terms are undisclosed.
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  • Jul. 9, 2013, 9:39 AM
    A roundup of tech analyst ratings changes: 1) Sprint (S +0.6%) has received an upgrade to Outperform from Cowen in response to the SoftBank deal. 2) H-P (HPQ +0.9%) has been upgraded to Buy by Brean. 3) Nokia (NOK +2.9%) has been downgraded to Neutra by Swedbank. 4) Western Digital (WDC +0.8%) has been started at Outperform, and Seagate (STX +0.5%) at Neutral, by Piper. 5) Crown Castle (CCI +0.4%) has been downgraded to Equal Weight by Evercore. 6) International Rectifier (IRF +3.4%) has been upgraded to Strong Buy by Raymond James. 7) Freescale (FSL +5%) has been upgraded to Overweight by Piper. 8) Synchronoss (SNCR -7.4%) has been downgraded to Sell by Goldman. 9) SolarCity (SCTY -2%) has been started at Hold by Maxim. 10) Ixia (XXIA -22.7%) has been downgraded to Hold by Stifel in response to its Q2 warning.
  • 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. 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)
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  • 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.
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  • 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?
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  • 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.
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  • 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.
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Company Description
Western Digital Corp is a developer, manufacturer & provider of data storage solutions that enable consumers, businesses, governments & other organizations to create, manage, experience & preserve digital content. Its product include; HDDs and SSDs.
Sector: Technology
Country: United States