Western Digital revenue beats estimates

Reuters News
Posted: Oct 26, 2017 4:22 PM

(Reuters) - Data-storage device maker Western Digital Corp <WDC.O> reported better-than-expected quarterly revenue on demand for its memory chips from smartphone makers and datacenter operators.

The company's shares, which have surged 31.5 percent this year, were down 1.5 percent in after-hours trading on Thursday.

Memory chips makers such as Western Digital are benefiting from a supply crunch earlier in the year that has boosted prices amid rising demand from smartphone makers and data center operators.

Rival Seagate Technology PLC also reported a better-than-expected revenue for its latest reported quarter.

Western Digital posted a net income of $681 million, or $2.23 per share, in the first quarter ended Sept. 29, compared with a net loss of $366 million, or $1.28 per share, a year earlier.

Excluding items, the company earned $3.56 per share.

Net revenue rose 9.9 percent to $5.18 billion.

Analysts on average had expected earnings of $3.29 per share and revenue of $5.14 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Sonam Rai in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila)