WD you like to know the damage? Analyst predicts sales dip ahead for Western Digital

www.theregister.co.uk | 1/18/2019 | Staff
iVchaniVchan (Posted by) Level 3
Click For Photo: https://regmedia.co.uk/2015/07/22/depressed.jpg

The slump in Western Digital's SSD and disk drive sales is forecast to deepen for the current and next quarters, according to analysts.

WD is expected to report financials for Q2 of fiscal 2019, which ended December 28, 2018, on 24 January.

Shock - Slump - Firm - Q1 - September

The shock slump started in the firm's Q1 of fiscal 2019, ended 28 September 2018, and is widely expected to continue.

As CEO Steve Milligan acknowledged at an investor day in December: "The near-term challenges will unfortunately continue to persist for the next few quarters."

Wells - Fargo - Analyst - Aaron - Rakers

Wells Fargo senior analyst Aaron Rakers agreed, and drilled down into some forecasts. He said he expected second fiscal 2019 quarter revenues to be $4.16bn, a 22 per cent decrease from the $5.3bn of Q2'18, with the third quarter dropping to $3.6bn, a 28 per cent annual slump from the $5bn of Q3'18.

A chart shows the damage the analyst predicts will hit the firm:

Note - Fy2019 - Q2 - Q3 - Revenues

Note that fy2019 Q2 and Q3 revenues are Wells Fargo estimates.

Wells Fargo's predictions for Q2 are not far off from Western Digital's own estimations. In the earnings call for its first quarter of fiscal 2019 ended 28 September 2018, CFO Mark P Long said the firm "expect[ed] revenue in the range of $4.2bn to $4.4bn" [16-21 per cent down year-on-year] in the coming...
(Excerpt) Read more at: www.theregister.co.uk
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