NASDAQ$WDC

Western Digital Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported revenue at the high end of guidance, but experienced GAAP EPS loss due to challenging flash price environment and cloud inventory digestion.

Western Digital reported fiscal second quarter 2023 financial results with revenue at the high end of the guidance range. The company is taking actions to reset the business by optimizing cost structure and strengthening liquidity due to the post-pandemic environment.

  • Second quarter revenue was $3.11 billion, at the high end of the guidance range.
  • Second quarter GAAP earnings per share (EPS) was $(1.40) and Non-GAAP EPS was $(0.42), which includes $100 million of underutilization related charges in HDD.
  • Second quarter GAAP operating loss was $321 million and Non-GAAP operating loss was $119 million.
  • Expect fiscal third quarter 2023 revenue to be in the range of $2.60 billion to $2.80 billion.

Headline financials

Total Revenue

$3.11B

Previous: $4.83B-35.7%
EPS (adj)

-$0.42

Previous: $2.30-118.3%
Capital Expenditures

-$578M

Previous: -$551M-4.9%
Free Cash Flow

-$1.02B

Previous: $13M-7976.9%
Net Income

-$446M

Previous: $564M-179.1%
Operating Income

-$321M

Previous: $727M-144.2%
Gross Profit

$528M

Previous: $1.58B-66.6%
Cash & Equivalents

$1.87B

Previous: $2.53B-26.1%
Total Assets

$25B

Previous: $26B-3.8%
Stock-Based Comp

$86M

Previous: $87M-1.1%

Revenue & EPS history

Western Digital · Revenue · Quarterly

$3.11B

Q2 2023-35.7%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Expect fiscal third quarter 2023 revenue to be in the range of $2.60 billion to $2.80 billion. Expect Non-GAAP EPS in the range of $(1.70) to $(1.40) which includes underutilization charges in flash and HDD totaling $250 million, with flash driven by a 30% reduction in wafer starts beginning in January.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.7%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+2.9%

Avg return

30 days after

51%

36 / 71 earnings

Positive

+23.6%

Q4 2012

Best reaction

-17.7%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+1.6%+12.7%+28.7%
Q2 2026-11.4%-3.2%+0.5%
Q1 2026+14.4%+15.9%+18.2%
Q3 2025+8.0%+10.9%+26.9%
Q2 2025+4.7%+1.6%+3.1%
Q1 2025+4.3%+2.5%-0.3%
Q4 2024-4.2%-9.8%+3.8%
Q3 2024+2.6%+1.8%+7.6%
Q2 2024+0.3%+0.2%-3.4%
Q1 2024+3.0%+10.4%+21.4%
Q4 2023+2.0%+3.4%+1.2%
Q3 2023+0.4%-1.3%+19.6%
Q2 2023-2.1%-2.2%-13.2%
Q1 2023+0.6%+1.2%+5.8%
Q4 2022-4.7%-4.5%-16.5%
Q3 2022+6.0%+23.3%+24.4%
Q2 2022-8.6%-3.7%-3.0%
Q1 2022-5.7%-0.8%+4.1%
Q4 2021+1.4%+2.2%-7.2%
Q3 2021+0.0%-4.7%+6.6%
Q2 2021+6.1%+8.9%+28.8%
Q1 2021-5.5%-8.2%+13.7%
Q4 2020-16.7%-16.5%-14.7%
Q3 2020-15.2%-15.5%-7.0%
Q2 2020-1.9%+2.5%-16.8%
Q1 2020-17.7%-12.5%-19.8%
Q4 2019-1.9%-6.8%+1.2%
Q3 2019+0.4%-0.2%-22.1%
Q2 2019+14.7%+13.1%+31.6%
Q1 2019-15.6%-21.0%-9.6%
Q4 2018-5.9%-7.2%-15.6%
Q3 2018-5.9%-7.1%+0.5%
Q2 2018+3.0%+0.1%+2.5%
Q1 2018-0.2%+2.3%+6.3%
Q4 2017-8.6%-7.8%-2.9%
Q3 2017+5.3%+3.2%+6.4%
Q2 2017+3.2%+4.2%-1.8%
Q1 2017+11.1%+9.0%+14.8%
Q4 2016-11.1%-15.7%-12.2%
Q3 2016-11.3%
Q2 2016+9.8%
Q1 2016+1.0%
Q4 2015+11.2%
Q3 2015-3.1%
Q2 2015-1.1%
Q1 2015+3.0%
Q4 2014-0.9%
Q3 2014-5.9%
Q2 2014-2.0%
Q1 2014+3.6%
Q4 2013-6.3%
Q3 2013-1.2%
Q2 2013+0.9%
Q1 2013-1.3%
Q4 2011-1.8%
Q4 2012+23.6%
Q3 2012-12.1%
Q2 2012+6.5%
Q1 2012-3.6%
Q3 2011-3.1%
Q2 2011-2.1%
Q1 2011-1.5%
Q4 2008+2.2%
Q4 2010+2.2%
Q3 2009-2.8%
Q3 2010-2.8%
Q2 2010+0.6%
Q1 2009+0.3%
Q1 2010+0.3%
Q4 2009+0.3%
Q2 2009+0.3%

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