A report from Western Digital (WDC) for the fiscal second quarter of 2021 drove the stock to a high of $56.43 at the auction on January 29. According to WDC’s financial statements for the past quarter, its total revenue declined 7 percent to $3.9 billion due to a 46 percent decline in sales of data center solutions. Additionally, the segment of client devices saw a 19% growth in revenue. The free cash flow for the company was $149 million. Earnings per share were $0.2 on GAAP.
In the enterprise services segment, WDC sales have been affected by the continuing uncertainty surrounding COVID-19. New high-speed NVMe drives have led to growth in the retail segment. WDC completed certification last quarter for next-generation solid-state drives (SSDs) to meet the world’s largest data center operators’ demands. As a result, WDC will introduce new products during calendar 2021 and grow sales in the enterprise segment once the pandemic has passed.
COVID-19 has, in general, helped accelerate digital trends, especially the move to the cloud. Consequently, WDC’s sales will increase over the next two years due to this. Cloud storage for laptops and tablets has been boosted by telecommuting and new collaboration services. It is a great opportunity for WDCs to gain market share in the cloud servers market that requires fast storage.
Western Digital (WDC) revenue for the third quarter is expected to be in the range of $ 3.85 -$ 4.05 billion, and GAAP profit is likely to be between $ 0.55 – $0.75 per share.
Western Digital (WDC) stock rose 7.18% to $56.43 at the previous market close. The firm’s shares rose 1.88% since January 1. In the most recent five trades, there was an increase of 11.28%, and in the most recent 30 trades, a rise of 16.86% occurred. WDC share price increased by 31.97 percent over the last six months and 45.40 percent over the previous three months.
