Earnings Results: Western Digital seizes on retail demand for storage

United States

Western Digital Corp. stock rose more than 10% after hours Thursday after the company reported fiscal second-quarter results that it said “captured strength” in its retail business as demand has risen amid the coronavirus pandemic.

Western Digital WDC, -1.02% shares increased nearly 10.2% after hours, after falling 1% in the regular session to close at $ 52.65. 

Chief Executive David Goeckeler said in a statement that the provider of storage devices and solutions is adapting “to take advantage of the immense opportunities in the storage industry.” The company said the pandemic has boosted technological innovation and driven “robust storage demand for notebook, tablet and Chromebook devices.”

Western Digital also reported a 6% increase in client-solutions revenue but a 46% drop in data-center devices and solutions revenue.

The company reported net income of $ 62 million, or 20 cents a share, compared with a loss of $ 139 million, or 47 cents a share, in the year-ago period. Adjusted earnings were 69 cents a share, adjusted for amortization of acquired intangible assets and stock-based compensation. Revenue fell to $ 3.9 billion from $ 4.2 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 54 cents a share on revenue of $ 3.88 billion.

The company expects fiscal third-quarter 2021 revenue to be between $ 3.85 billion and $ 4.05 billion, with non-GAAP earnings between 55 cents and 75 cents a share. Analysts had forecast earnings of 63 cents a share on sales of $ 3.86 billion.

Shares of the San Jose, Calif.-based company have risen nearly 36% in the past three months but are down nearly 5% so far this year.