Western Digital stock dropped Friday, which follows its quarterly earnings report that included an outlook well short of estimates, as it also announced a new chief financial officer. WDC stock plunged to near a 12-month low.
After the market close Thursday, Western Digital reported adjusted earnings of $2.30 a share on revenue of $4.83 billion. Analysts expected Western Digital to report earnings of $2.13 a share on revenue of $4.82 billion. Results were for its fiscal second quarter ended Dec. 31.
However, for its current quarter, Western Digital expects adjusted earnings in the range of $1.50 to $1.80. Analysts expected $1.94. Western Digital sees revenue in the range of $4.45 billion to $4.65 billion, below analyst estimates of $4.75 billion
Western Digital is a leading provider of disk drives and memory chips. In the disk drive market it competes primarily against Seagate Technology. In the chip business WDC competes with Samsung Electronics, Micron Technology and others.
WDC Stock Action
WDC stock dropped 7% to 50.10 during morning trading on the stock market today. During after-hours trading Thursday, WDC stock fell more than 13%.
The company also announced that Wissam Jabre, formerly chief financial officer at Dialog Semiconductor, will be the new CFO at Western Digital, effective Feb. 7. Current CFO Robert Eulau "will remain with the company during an advisory period to ensure a seamless transition," Western Digital said in a news release.
Western Digital Chief Executive David Goeckeler, in written remarks in the earnings release, said "ongoing supply chain disruptions and Covid-related challenges" continue to be a drag on results.
"While we continue to experience strong demand across our end markets, these challenges continue to present a headwind to near-term results," he said. "As these transitory headwinds subside, we expect to emerge in a stronger position to drive better through-cycle results, creating value for our shareholders, employees and customers."
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