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Jun 28, 2024
Western Digital Q4 2024 Earnings Report
Reported Q4 2024 financial results, showing sequential revenue growth and improved profitability.
Key Takeaways
Western Digital reported a strong Q4 2024 with revenue reaching $3.76 billion, a 9% increase sequentially. GAAP EPS was $0.88 and Non-GAAP EPS was $1.44. The company is benefiting from a broad recovery across end markets and structural improvements in Flash and HDD profitability.
Revenue increased to $3.76 billion, up 9% sequentially.
GAAP EPS reached $0.88, and Non-GAAP EPS was $1.44.
Cloud revenue grew by 21% sequentially, driven by higher nearline shipments and pricing in HDD, as well as increased bit shipments and pricing in enterprise SSDs.
Client revenue increased by 3% sequentially, influenced by higher flash ASPs offsetting a decline in flash bit shipments.
Western Digital
Western Digital
Forward Guidance
For the fiscal first quarter of 2025, Western Digital expects revenue to be in the range of $4.00 billion to $4.20 billion and Non-GAAP EPS to be in the range of $1.55 to $1.85.
Positive Outlook
- Revenue between $4.00B and $4.20B
- Gross margin between 36.5% and 38.5%
- Non-GAAP gross margin between 37.0% and 39.0%
- Operating expenses between $845M and $885M
- Non-GAAP operating expenses between $695M and $715M
Challenges Ahead
- Interest and other expense, net ~$110M
- Non-GAAP tax rate between 15% and 17%
- Diluted shares outstanding ~360M
- Gross margin guidance excludes amortization of acquired intangible assets and stock-based compensation expense of approximately $10 million to $20 million
- Non-GAAP operating expenses guidance excludes stock-based compensation expense and expenses related to business separation costs, totaling approximately $150 million to $170 million