Western Digital To Split Business, Shifts Focus After Varied Segmental Performance in Q1
Portfolio Pulse from Anusuya Lahiri
Western Digital Corp (WDC) reported a Q1 FY23 revenue decline of 26% YoY to $2.75 billion, beating the consensus of $2.65 billion. The company's board approved a plan to separate its HDD and Flash businesses. WDC sees Q2 FY23 revenue of $2.85 billion - $3.05 billion, compared to the consensus of $2.92 billion. WDC shares traded higher by 13.20% at $44.11 premarket on the last check Monday.
October 30, 2023 | 1:00 pm
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Western Digital reported a Q1 FY23 revenue decline but beat the consensus. The company plans to separate its HDD and Flash businesses. Shares traded higher in premarket.
Despite a YoY revenue decline, Western Digital managed to beat the consensus, which is a positive sign. The company's decision to split its HDD and Flash businesses could be seen as a strategic move to improve efficiency and profitability, which may have contributed to the rise in the stock price. The company's outlook for Q2 FY23 revenue also beats the consensus, indicating potential growth.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100