Investing.com - Western Digital (NASDAQ:WDC) reported on Thursday second-quarter results that beat analysts' forecasts and offered up a sunnier outlook on chip demand for the year ahead.
Western Digital (NASDAQ:WDC) announced earnings per share of $0.62 on revenue of $4.23B. Analysts polled by Investing.com anticipated EPS of $0.57 on revenue of $4.22B. That with comparison to EPS of $1.45 on revenue of $4.23B in the same period a year before. Western Digital had reported EPS of $0.34 on revenue of $4.04B in the previous quarter. Analysts are expecting EPS of $0.7 and revenue of $4.06B in the upcoming quarter.
The beat on the top-line comes as falling memory prices appear to have bottomed, spurring improved margins.
“The December quarter results reflect strong execution in our product roadmap, success in increasing our hard drive gross margin, and an improving flash market,” said Steve Milligan, chief executive officer, Western Digital.
Western Digital shares are up 5.47% from the beginning of the year and are trading at $71.05 , still down 7.03% from its 52 week high of $72.00 set on January 23. They are outperforming the Nasdaq which is up 2.87% year to date.
Looking ahead, the company said: "We expect an accelerated recovery in our flash gross margins, which coupled with ongoing strength in demand for both hard drives and flash, positions us well for continued profitable growth in calendar year 2020.”
Western Digital (NASDAQ:WDC) shares gained 6.14% in after-hours trade following the report.
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