On January 27, 2022, Western Digital Corp. (WDC) stock slipped further after-hours following the announcement of quarterly earnings. The company reported its quarterly results for Q2 fiscal 2022 on Thursday after the market closed.
While the stock was already trading in the red during regular trading, its descent escalated in the after-hours following the report. WDC stock closed the regular session at $53.84, with a loss of 1.36%. The stock lost a further 8.41% in the after-hours at a volume of 1.71 million. Therefore, WDC stock was trading at $49.31 per share in the after-hours on Thursday.
The data storage devices and solutions provider, Western Digital Corp. has a market capitalization of $17.01 billion.
WDC’s Quarterly Earnings
In the Q2 of fiscal 2022, the company’s revenue was $4.83 billion, against $3.94 billion in the year-ago quarter. While the revenue decreased 4% sequentially, it marked an increase of 23% year over year.
Moreover, WDC had a non-GAAP net income of $724 million in Q2 fiscal 2022, against $212 million in the same period of fiscal 2021. Consequently, the non-GAAP earnings per share were $2.30 and $0.69 in Q2 of fiscal 2022 and 2021, respectively. Further, the latest non-GAAP net income and EPS grew by 242% and 233% year over year, respectively.
In addition, at the end of the quarter, the company had total cash and cash equivalents of $2.53 billion.
Q3 Fiscal 2022 Outlook
Along with the Q2 results, the company also provided guidance for its ongoing Q3 of fiscal 2022.
The company expects revenue for Q3 fiscal 2022 to be in the range of $4.45 to $4.65 billion.
Furthermore, the expected non-GAAP diluted EPS for the quarter is between $1.50 and $1.80. Comparatively, analysts were expecting EPS of $1.94 for Q3 fiscal 2022.
WDC’s CFO Transition
In addition, the company also reported its CFO transition on January 27, 2022. According to this, Wissam Jabre will be assuming the role of the Executive Vice President as well as Chief Financial Officer of the company. This transition will be effective in the week of February 07, 2022. For a seamless transition, the company’s current CFO will be staying for an advisory period with WDC.
Mr. Jabre brings over two decades of experience in semiconductors and operations to the company. Previously, he served as the CFO at Dialog Semiconductor.
Conclusion
On Thursday, the company reported better-than-expected earnings for the previous quarter, as it beat both revenue and EPS estimates. But WDC’s guidance for the ongoing quarter left the investors unimpressed as it fell below their and analysts’ expectations. Thus, causing the stock to tank after-hours.
