Western Digital Q1 revenue, profit beat estimates on strong demand

Overview

• Storage hardware maker's fiscal Q1 revenue rose 55% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 up 161% yr/yr, beating analyst expectations

• Company raised quarterly dividend by 17%

Outlook

• Western Digital expects Q2 revenue of $5.1 bln, plus or minus $100 mln

• Company sees Q2 non-GAAP EPS of $5.80, plus or minus $0.20

• Western Digital expects Q2 non-GAAP gross margin between 60% and 61%

Result Drivers

• CUSTOMER DEMAND - Co said robust customer demand and disciplined execution drove revenue and margin growth

• TECHNOLOGY TRANSITIONS - Co cited execution on technology transitions and expanding customer base as supporting demand

• VOLUME AND PRICING - CFO said robust exabyte growth and improved pricing contributed to strong results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Western Digital Corp is $625.00, about 65.1% above its October 21 closing price of $378.51

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 36 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)