WESTERN DIGITAL Reports 41% Year-Over-Year Revenue Decrease for Q4 2023
August 10, 2023
🌥️Earnings Overview
Western Digital ($NASDAQ:WDC) reported on July 31 2023 that its total revenue for the fourth quarter ending June 30 2023 was USD 2672.0 million, a 41.0% decrease year-over-year. Additionally, the company’s net income for the same period was USD -715.0 million, a decrease from the 301.0 million reported in the prior year.
Analysis
Analyzing WESTERN DIGITAL‘s financials with GoodWhale reveals that the company has a high health score of 8/10 thanks to its strong cashflows and debt management. According to the Star Chart, WESTERN DIGITAL is classified as an ‘elephant’, a type of company that is very rich in assets after deducting off liabilities. This type of company is attractive to a wide range of investors looking for steady income, low volatility, and a low-risk investment. WESTERN DIGITAL is strong in liquidity, medium in terms of assets, profitability and weak in dividend and growth. These qualities make it well-suited as an income security or an alternative to a bank deposit. For those interested in long-term growth, WESTERN DIGITAL may have potential in its current form, but it may require additional investment or diversification into related industries to attain more significant returns. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Western Digital. More…
| Total Revenues | Net Income | Net Margin |
| 12.32k | -1.73k | -12.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Western Digital. More…
| Operations | Investing | Financing |
| -408 | -762 | 875 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Western Digital. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.43k | 23.55k | 2.74 |
Key Ratios Snapshot
Some of the financial key ratios for Western Digital are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.7% | 112.7% | -10.4% |
| FCF Margin | ROE | ROA |
| -9.9% | -12.0% | -3.3% |
Peers
The company’s main competitors are Seagate Technology Holdings PLC, I-O Data Device Inc, and NetApp Inc.
– Seagate Technology Holdings PLC ($NASDAQ:STX)
Seagate Technology Holdings PLC is a world leader in data storage solutions, providing innovative hard disk drives, solid state drives, and external storage solutions. The company has a market capitalization of $12 billion and a return on equity of 714.55%. Seagate’s products are used in a wide variety of applications, including enterprise storage, cloud storage, personal computing, and consumer electronics. The company’s products are sold through a global network of distributors and resellers.
– I-O Data Device Inc ($NASDAQ:NTAP)
NetApp Inc is a publicly traded company with a market capitalization of $14.75 billion as of April 2021. The company has a return on equity of 100.42% as of the same date. NetApp is a data management and data storage company that provides software, systems, and services to help customers manage and store their data. The company offers a variety of products and services, including data storage, cloud data management, data protection, and more.
Summary
Western Digital has reported disappointing fourth quarter results for the fiscal year ending June 30 2023. Revenue decreased by 41.0% year-over-year, and net income dropped to a net loss of USD -715.0 million, compared to a net income of USD 301.0 million in the prior year. Investors should closely monitor the company’s financial performance as it navigates these challenging economic conditions and plan accordingly for any potential future moves from the business.
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