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Shares of Western Digital (NASDAQ:WDC) on Thursday slipped more than 5% in extended trading, after the data storage company reported its seventh consecutive quarterly decline in revenue.
WDC stock was last down 5.3% to $57.12.
Western Digital (WDC) posted a FQ2 2024 adjusted loss per share of 69 cents on revenue of $3.03B. Analysts were expecting the company to post a loss per share of $1.10 on revenue of $3.01B.
However, revenue fell about 2% Y/Y. The decline was largely due to a 13% Y/Y fall in sales in the company’s cloud business due to lower e-solid state drive bit shipments.
Last quarter, Western Digital (WDC) said it would split its hard disk drive (HDD) and flash memory businesses into two, separate companies by H2 2024. That move came after talks of merging the flash memory unit with Japan’s Kioxia stalled.
In FQ2, WDC’s flash revenue climbed slightly by 0.5% Y/Y to $1.67B. Meanwhile, HDD revenue fell 5.7% Y/Y to $1.37B. WDC also said that its quarterly loss included $156M of underutilization-related charges in flash and HDD.
“Western Digital’s (WDC) second quarter results demonstrate that the structural changes we have put in place over the last few years and the strategy we have been executing are producing significant outperformance across our flash and HDD businesses,” top boss David Goeckeler said in a statement.
Turning to WDC’s guidance, for FQ3 the company sees an adjusted loss per share of 10 cents to adjusted earnings per share of 20 cents. The consensus estimate is for a loss per share of 29 cents. Revenue is expected to be $3.20B to $3.40B, versus a consensus estimate of $3.18B.
Shares of Western Digital (WDC) rival Seagate (STX) were down 3.8% to $87.50 after hours. Seagate (STX) on Wednesday also posted a seventh straight quarter of revenue decline.
