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Apr 03, 2020
Western Digital Q3 2020 Earnings Report
Reported a revenue increase of 14% year-over-year, driven by growth in Data Center Devices and Solutions and Client Devices.
Key Takeaways
Western Digital reported Q3 2020 financial results with revenue of $4.2 billion, a 14% increase year-over-year. GAAP EPS was $0.06, and non-GAAP EPS was $0.85. The company generated $142 million in operating cash flow and $176 million in free cash flow. The dividend is being suspended to strengthen reinvestment in growth and innovation.
Revenue was $4.2 billion, up 14% year-over-year.
Data Center Devices and Solutions revenue grew 22% year-over-year.
GAAP EPS was $0.06, and non-GAAP EPS was $0.85.
Generated $142 million in operating cash flow and $176 million in free cash flow.
Forward Guidance
Western Digital expects fourth quarter revenue to be in the range of $4.25 to $4.45 billion with non-GAAP EPS in the range of $1.00 to $1.40.
Positive Outlook
- Revenue to be in the range of $4.25 to $4.45 billion.
- Gross margin ~ 25% - 27%.
- Non-GAAP gross margin ~ 29% - 31%.
- Operating expenses ($ in millions) $850 - $870.
- Non-GAAP EPS in the range of $1.00 to $1.40.
Challenges Ahead
- Operating expenses ($ in millions) $740 - $760.
- Interest and other expense, net ($ in millions) $85 - $90.
- Interest and other expense, net ($ in millions) $75 - $80.
- Tax rate N/A.
- Tax rate ~ 24% - 25%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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