Western Digital Q4 2024 Earnings Report
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
Western Digital Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income