SAN JOSE, California – West Digital Corp. (NASDAQ:) reported its fiscal fourth-quarter earnings, which beat analyst expectations for earnings per share (EPS) but offered a weaker-than-expected outlook for the first quarter of 2025, sending shares down 4% in response on the news .
For the fourth quarter, the company posted adjusted earnings per share of $1.44, better than analyst expectations of $1.16. Revenue was $3.76 billion, slightly above the consensus estimate of $3.74 billion.
The company’s cloud revenue saw a notable increase of 21% quarter-over-quarter (QoQ), while customer revenue grew 3%. However, consumer sales saw a decline of 7% quarter on quarter. Despite mixed performance across segments, total quarterly revenue represented a sequential increase of 9%.
Western Digital CEO David Goeckeler attributed the quarter’s success to the company’s diversified portfolio and strategic initiatives.
“Our fourth quarter and fiscal 2024 results reflect the diverse and innovative portfolio we have developed in line with our strategic roadmap,” said Goeckeler. He also highlighted the transformative period within the industry, driven by the AI Data Cycle, which he believes will increase demand for storage.
Looking ahead, the company forecast first-quarter 2025 revenue to be between $4.00 billion and $4.20 billion, with a midpoint slightly below analyst consensus of $4.23 billion.
Guidance for adjusted earnings per share is a range of $1.55 to $1.85, with the midpoint remaining below the consensus estimate of $1.76. The weaker outlook is the main reason for the stock’s decline, as investors adjust their expectations based on the company’s projections.
Western Digital’s full fiscal year 2024 saw GAAP earnings per share of -$1.72 and adjusted earnings per share of -$0.20. The company’s results and guidance reflect the challenges and opportunities in the evolving technology landscape, with a particular emphasis on the growth potential in data storage, driven by emerging technologies.
This article was produced with the support of AI and reviewed by an editor. For more information see our General Terms and Conditions.
