Western Digital forecasts upbeat revenue but shares fall on lofty expectations
WDC•Fourth-quarter results beat estimates
Western Digital reported a 44% rise in fourth-quarter revenue to $3.75 billion, beating the estimate of $3.69 billion.
Adjusted profit came in at $3.56 per share, compared with the estimate of $3.30.
Shares fall as investors focus on high expectations
Still, its shares dropped more than 9% in extended trading, after the forecast failed to impress investors even though the stock has tripled this year on expectations of sustained AI-driven growth.
Memory and storage stocks have soared this year as investors bet data-center demand will support pricing and fuel growth across the industry.
While demand from AI data centers remains strong, rising memory prices have slowed consumer electronics replacement cycles, weakening demand in the personal computer and consumer hard drive markets where the company also operates. Weakness in these smaller segments for Western Digital could offset some of the momentum from its core data center business.
Western Digital gives revenue outlook slightly above estimates
Western Digital forecast quarterly revenue slightly above Wall Street estimates on Wednesday, betting on strong AI-driven demand for its hard disk drives.
The company expects first-quarter revenue of $4.1 billion, plus or minus $100 million, with the midpoint a touch above analysts' average estimate of , according to data compiled by LSEG. It expects adjusted profit of , also above the estimate of .
