By Wallace Witkowski
Western Digital Corp. shares dropped in the extended session Thursday after the data-storage device company’s outlook fell well short of Wall Street expectations.
Western Digital (NAS:WDC) shares fell 9% after hours, following a 3.2% rise in the regular session to close at $57.28.
The company expects adjusted second-quarter earnings of $1.95 to $2.25 a share on revenue of $4.7 billion to $4.9 billion, while analysts surveyed by FactSet had forecast $2.67 a share on revenue of $5.28 billion.
The company reported a fiscal first-quarter profit of $610 million, or $1.93 a share, versus a loss of $60 million, or 20 cents a share, in the year-ago period. Adjusted earnings were $2.49 a share, compared with 65 cents a share in the year-ago period.
Revenue rose to $5.05 billion from $3.92 billion in the year-ago quarter. Analysts had forecast earnings of $2.45 a share on revenue of $5.06 billion.
“Strong demand across diverse end markets, particularly for our cloud products, combined with Western Digital’s strong innovation engine, broad routes to market and sharpened execution, enabled us to deliver solid results within our guidance range, even in the face of significant COVID impacts and supply-chain disruptions,” said David Goeckeler, Western Digital chief executive, in statement.