Western Digital Corp.
WDC
Market Cap$17.98B
Close$
Earnings Call Q2 2025
January 29, 2025 - AI Summary
Strong Q2 Performance: Western Digital reported Q2 fiscal 2025 revenue of $4.3 billion, reflecting a 41% year-over-year increase. Non-GAAP gross margin was 35.9%, and non-GAAP earnings per share (EPS) came in at $1.77. The growth was primarily driven by the HDD business, which recorded a 76% year-over-year increase in revenue, reaching $2.4 billion.
HDD Business Outlook: The HDD segment continues to perform strongly, driven by increasing demand for high-capacity enterprise drives, particularly in nearline storage solutions. However, a sequential revenue decline is expected for Q3 due to seasonal factors and lower client and consumer shipments. Still, the company anticipates profitability to improve as customers adopt higher-capacity drives.
Challenges and Pricing Pressures in Flash Segment: The Flash division is facing short-term headwinds due to pricing pressures from oversupply, which led to a significant 13% decline in Sequential average selling prices (ASPs). For Q3, Flash revenue is projected to decline by mid-teens percentage due to a combination of inventory digestion and lower demand from PC OEMs and consumer markets.
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$-22.95
144.5% downside
Current Fair Value
144.5% downsideOvervalued by 144.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $17.98 Billion |
|---|---|
| Enterprise Value | $22.21 Billion |
| Dividend Yield | $0.4 (0%) |
| Earnings per Share | $-1.72 |
| Beta | 1.48 |
| Outstanding Shares | 346,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 10.9 |
|---|---|
| PEG | 3.82 |
| Price to Sales | 1.26 |
| Price to Book Ratio | 3.44 |
| Enterprise Value to Revenue | 1.54 |
| Enterprise Value to EBIT | 10.13 |
| Enterprise Value to Net Income | 11 |
| Total Debt to Enterprise | 0.35 |
| Debt to Equity | 1.49 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Western Digital Corp.
61,800 employees
CEO: David Goeckeler Western Digital creates environments for data to thrive. As a leader in data infrastructure, the company is driving the innovation needed to help customers capture, preserve, access and transform an ever-increasing diversity of data. Eve...