Stock Monitor: GDS Holdings Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 18, 2018 / If you want access to our free earnings report on Western Digital Corp. (NASDAQ: WDC), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=WDC. Western Digital reported its third quarter fiscal 2018 operating and financial results on April 26, 2018. Additionally, the maker of hard drives for businesses and personal computers provided guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for GDS Holdings Limited (NASDAQ: GDS), which also belongs to the Technology sector as the Company Western Digital. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Western Digital most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=WDC

Earnings Highlights and Summary

Western Digital reported revenue of $5.01 billion for its third fiscal quarter ended March 30, 2018, up 8% compared to revenue of $4.65 billion in Q3 FY17. The Company's reported numbers topped analysts' estimates of $4.94 billion

During Q3 FY18, Western Digital's operating income was $914 million compared to operating income of $525 million in Q3 FY17. The Company's non-GAAP operating income was $1.3 billion for the reported quarter compared to $1.0 billion in the year earlier same quarter.

For Q3 FY18, Western Digital's net income was $61 million, or $0.20 per share, compared to $248 million, or $0.83 per share, in Q3 FY17. The Company's GAAP net income for the reported period included debt extinguishment costs related to Western Digital's debt financing transactions.

Western Digital achieved non-GAAP net income of $1.1 billion, or $3.63 per share, for Q3 FY18 compared to non-GAAP net income of $716 million, or $2.39 per share, in Q3 FY17. The Company's reported numbers beat Wall Street's estimates of $3.31 per share.

Segment Results

During Q3 FY18, Western Digital's revenue for Data Center Devices and Solutions surged 25% to $1.7 billion on a y-o-y basis, driven by growth in cloud-related storage, this was led by strong demand for capacity enterprise hard drives.

For Q3 FY18, the Client Devices revenue was $2.3 billion, which was essentially flat on a y-o-y basis. The Company had significant growth in mobile and embedded products offset by client computer devices. Western Digital's Client Solutions revenue was $1 billion, reflecting an increase of 4% on a y-o-y basis, driven by strength in its hard drive and flash retail products.

Cash Matters

In Q3 FY18, Western Digital generated $1 billion of operating cash flow, reflecting an increase of 3% on a y-o-y basis. In the reported quarter, the Company paid approximately $190 million of interest expense that was originally scheduled for the fourth quarter 2018. Western Digital continued to reinvest in its business with $411 million in capital investments, resulting in free cash flow of $616 million for Q3 FY18. On a fiscal year-to-date basis, the Company generated $3.3 billion in operating cash flow, reflecting an increase of 34% on a y-o-y basis. Western Digital deployed $1.3 billion on capital investments, resulting in year-to-date free cash flow of $2 billion.

Western Digital closed Q3 FY18 with cash, cash equivalents, and available-for-sale securities totaling approximately $5.1 billion. Additionally, the Company has $1.75 billion remaining out of its $2.25 billion of total revolver capacity. As a result, Western Digital ended Q3 FY18 with approximately $6.8 billion of available liquidity.

Outlook

For the fourth quarter of fiscal 2018, Western Digital is forecasting revenue of $5 billion to $5.1 billion; gross margin of 41% to 42%; operating expenses between $840 million and $850 million; interest and other expense of approximately $100 million; and an effective tax rate in the 5% to 7% range. The Company is estimating non-GAAP earnings of $3.40 to $3.50 per share.

Stock Performance Snapshot

May 17, 2018 - At Thursday's closing bell, Western Digital's stock was slightly down 0.57%, ending the trading session at $86.52.

Volume traded for the day: 4.02 million shares, which was above the 3-month average volume of 3.96 million shares.

Stock performance in the previous three-month period ? up 2.34%; past twelve-month period ? up 1.53%; and year-to-date ? up 8.79%

After yesterday's close, Western Digital's market cap was at $25.78 billion.

Price to Earnings (P/E) ratio was at 7.65.

The stock has a dividend yield of 2.31%.

The stock is part of the Technology sector, categorized under the Data Storage Devices industry.

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