WDC Stock Plunges On Mixed Quarterly Results

Western Digital (WDC) reported fiscal second-quarter earnings late Thursday that included an outlook well short of estimates and announced a new chief financial officer. WDC stock plunged.

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The company reported adjusted earnings of $2.30 a share on revenue of $4.83 billion. Analysts expected Western Digital to report earnings of $2.13 a share on revenue of $4.82 billion. Results were for the quarter ended Dec. 31.

For the current quarter, Western Digital expects adjusted earnings in the range of $1.50 to $1.80. Analysts expected $1.94. Western Digital sees revenue in the range of $4.45 billion to $4.65 billion, below analyst estimates of $4.75 billion

Western Digital is a leading provider of disk drives and memory chips. In the disk drive market it competes primarily against Seagate Technology (STX). In the chip business WDC competes with Samsung Electronics, Micron Technology (MU) and others.

WDC Stock Action

WDC stock tumbled 13% to 46.90 during after-hours trading on the stock market today. Shares currently sit below their 50-day moving average as well as their 200-day moving average.

The company also announced that Wissam Jabre, formerly chief financial officer at Dialog Semiconductor, will be the new CFO at Western Digital, effective Feb. 7. Current CFO Robert Eulau “will remain with the company during an advisory period to ensure a seamless transition,” Western Digital said in a news release.

Seagate reported quarterly results late Wednesday. Seagate stock jumped Thursday in reaction. Earnings beat analyst estimates, as the company also indicated healthier growth and profitability was ahead.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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