Western Digital Anticipates Lower Revenue, Impacted by Weakened Demand
San Jose, California - March 8, 2023 - Western Digital Corporation (NYSE: WDC) has announced its projected revenue for the third quarter, falling short of Wall Street expectations amidst concerns over declining demand from cloud and corporate clients.
As businesses navigate rising borrowing costs and economic uncertainties, investments are being curtailed, directly affecting the demand for memory chips. This downturn follows a period of growth fueled by the pandemic.
Western Digital had previously indicated its anticipation of lower-end profits per share due to pricing challenges in its flash business. The company now forecasts third-quarter revenue within the range of $3.75 billion to $3.95 billion, below analyst estimates of $4 billion. Adjusted earnings per share are expected to be between 90 cents and $1.20, also falling short of the consensus estimate of $1.47.
In the second quarter, Western Digital reported revenue of $4.29 billion, marginally above analyst expectations of $4.26 billion. Adjusted earnings per share were $1.77, slightly below estimates of $1.78 per share.
The news follows a similar announcement from rival Seagate Technology, which also forecasted lower-than-anticipated revenue for the third quarter.