Western Digital Q1 Bottomline Misses Estimate, Q2 Outlook Lags Consensus

Western Digital Corp WDC reported a first-quarter FY23 revenue decline of 26% year-on-year to $3.74 billion, beating the consensus of $3.65 billion.
Non-GAAP EPS of $0.20 missed the consensus of $0.39.
Cloud revenue decreased 18% Y/Y to $1.83 billion, Client revenue declined 34% Y/Y to $1.23 billion, and Consumer revenue declined 30% Y/Y to $678 million.
The non-GAAP gross margin contracted 720 bps to 26.7%.
It generated $6 million in operating cash flow and held $2.05 billion in cash and equivalents.
David Goeckeler, Western Digital CEO, said, "As we remain focused on innovation and execution, I am optimistic that Western Digital will emerge stronger as we continue to ramp multiple new products into data centers worldwide and market conditions improve."
Outlook: WDC sees Q2 FY23 revenue of $2.90 billion - $3.10 billion below the consensus of $3.69 billion.
It sees non-GAAP EPS of $(0.25) - $0.05 below the consensus of $0.34.
Price Action: WDC shares traded higher by 1.62% at $35.85 on the last check Thursday.