Why Western Digital (WDC) Shares Are After Hours

Western Digital Corp WDC shares fell in Tuesday’s after-hours session after the company reported mixed fiscal second-quarter results and issued weak guidance.

What Happened: Western Digital reported second-quarter revenue of $3.11 billion, which beat average analyst estimates of $2.99 billion, according to Benzinga Pro. The company reported a quarterly net loss of 42 cents per share, which may not compare to estimates for a loss of 12 cents per share.

Western Digital said its bottom-line results include $100 million of underutilization related charges in hard disk drives (HDD).

“The Western Digital team delivered revenue at the high end of our guidance range, despite a challenging flash price environment and continued cloud inventory digestion. We continue to take action to reset the business in response to the post-pandemic environment by optimizing our cost structure and strengthening our liquidity,” said David Goeckeler, CEO of Western Digital.

Western Digital anticipates a fiscal third-quarter adjusted net loss of $1.40 to $1.70 per share. The company sees third-quarter revenue in a range of $2.6 billion to $2.8 billion versus estimates of $3.01 billion.

Western Digital’s outlook includes underutilization charges in flash and HDD totaling $250 million, with flash driven by a 30% reduction in wafer starts beginning in January.

See Also: Snap Stock Sinks On Q4 Earnings, Company Holds Back Guidance: What’s Going On?

WDC Price Action: Western Digital shares are down 4.60% at $41.93 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Western Digital.

Image and article originally from www.benzinga.com. Read the original article here.