NASDAQ$WDC

Western Digital Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Western Digital's Q3 2024 financial performance improved due to growth in cloud and client segments.

Western Digital reported a strong fiscal third quarter with revenue of $3.46 billion, up 14% sequentially. Cloud revenue increased 45% and Client revenue increased 5%, while Consumer revenue decreased by 13%. GAAP EPS was $0.34 and Non-GAAP EPS was $0.63.

  • Revenue reached $3.46 billion, a 14% sequential increase.
  • Cloud revenue grew by 45% quarter-over-quarter.
  • Client revenue increased by 5% sequentially.
  • GAAP EPS was $0.34 and Non-GAAP EPS was $0.63.

Headline financials

Total Revenue

$3.46B

Previous: $2.8B+23.3%
EPS

$0.34

Previous: -$1.37+124.8%
GAAP Gross Margin

29.6%

No prior period
GAAP Operating Expenses

$425M

No prior period
Capital Expenditures

-$371M

Previous: -$702M+47.2%
Free Cash Flow

-$236M

Previous: -$1.27B+81.5%
Net Income

$135M

Previous: -$572M+123.6%
Operating Income

$273M

Previous: -$472M+157.8%
Gross Profit

$1B

Previous: $286M+250.0%
Cash & Equivalents

$1.89B

Previous: $2.22B-14.7%
Total Assets

$23.8B

Previous: $25.2B-5.4%
R&D Expense

$494M

No prior period
Stock-Based Comp

$77M

Previous: $74M+4.1%

Revenue & EPS history

Western Digital · Revenue · Quarterly

$3.46B

Q3 2024+23.3%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Western Digital expects fiscal fourth quarter 2024 revenue to be in the range of $3.60 billion to $3.80 billion, with Non-GAAP EPS in the range of $0.90 to $1.20.

Tailwinds

  • Revenue is expected to be between $3.60 billion and $3.80 billion.
  • Gross margin is projected to be between 31.5% and 33.5% on a GAAP basis.
  • Non-GAAP gross margin is expected to be between 32.0% and 34.0%.
  • Operating expenses are estimated to be between $770 million and $800 million on a GAAP basis.
  • Non-GAAP EPS is projected to be in the range of $0.90 to $1.20.

Headwinds

  • GAAP operating expenses are expected to be between $770 million and $800 million.
  • Interest and other expenses are expected to be around $105 million.
  • Non-GAAP income tax expense is projected to be between $30 million and $40 million.
  • Diluted shares outstanding are expected to be approximately 342 million.
  • Business conditions and market dynamics could impact actual results.

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 Q3 2024

Historical avgQ3 2024

-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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