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Jan 01, 2021
Western Digital Q2 2021 Earnings Report
Western Digital's financial performance declined slightly due to a decrease in Data Center Devices and Solutions revenue, which offset growth in Client Devices and Client Solutions.
Key Takeaways
Western Digital reported a 7% year-over-year decrease in revenue to $3.9 billion. While Client Devices and Client Solutions revenue increased, Data Center Devices and Solutions revenue declined significantly. GAAP EPS was $0.20, and non-GAAP EPS was $0.69. The company generated $425 million in operating cash flow and $149 million in free cash flow.
Second quarter revenue was $3.9 billion, a 7% decrease year-over-year.
Client Devices revenue increased 19% year-over-year.
Data Center Devices and Solutions revenue decreased 46% year-over-year.
Second quarter GAAP EPS was $0.20 and non-GAAP EPS was $0.69.
Forward Guidance
Western Digital expects fiscal third quarter 2021 revenue to be in the range of $3.85 billion to $4.05 billion with non-GAAP EPS in the range of $0.55 to $0.75.
Positive Outlook
- Revenue between $3.85 billion and $4.05 billion.
- Gross margin between 24.5% and 26.5%.
- Non-GAAP gross margin between 25.5% and 27.5%.
- Operating expenses between $770 million and $790 million.
- Non-GAAP EPS between $0.55 and $0.75.
Challenges Ahead
- Interest and other expense, net of ~$80 million.
- Non-GAAP interest and other expense, net of ~$70 million.
- Tax rate of ~23%.
- Diluted shares outstanding (in millions) of ~310.
- Non-GAAP operating expenses between $705 million and $725 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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