Western Digital (NASDAQ:WDC) reported mixed fiscal second-quarter results, with revenue surpassing expectations but earnings falling short. The data storage giant also issued a disappointing forecast for the current quarter, adding to investor concerns.
For the quarter, Western Digital reported adjusted earnings per share of $1.77, missing analysts’ expectations of $1.88. However, revenue climbed 41% year-over-year to $4.29 billion, narrowly beating Wall Street’s projection of $4.28 billion.
Despite the revenue beat, the company’s guidance for the fiscal third quarter underwhelmed investors. Western Digital expects revenue between $3.75 billion and $3.95 billion, coming in below the consensus estimate of $4.02 billion. Its projected adjusted earnings per share of $0.90 to $1.20 also fell well short of analyst expectations of $1.51.
Breaking down the second-quarter performance, cloud revenue rose 6% sequentially to $2.35 billion, making up 55% of total sales. Meanwhile, client revenue declined 3% from the previous quarter to $1.17 billion, while consumer revenue grew 14% to $771 million. With weaker-than-expected guidance overshadowing solid revenue growth, Western Digital faces renewed pressure to navigate ongoing challenges in the data storage market.