WDC - Western Digital Outperformed Seagate For The First Time In 6 Quarters But It Isn't Sustainable
2024-05-28 15:56:04 ET
Summary
- Western Digital's recent fiscal 3Q 2024 quarter exceeded earnings expectations, with revenue up 14% sequentially and 23% YoY.
- Seagate experienced a temporary slowdown due to a mechanical component issue but expects to ship HAMR-based Mozaic drives in the next quarter.
- Nearline HDDs are expected to see a resurgence in demand as data centers recover and AI-driven applications expand, maintaining HDD market dominance.
- HDDs are expected to maintain market share and dominate data centers for the next 10 years due to cost efficiency and increasing capacities.
I’ve written extensively about the competition between Seagate ( STX ) and Western Digital ( WDC ), and my analysis has always pointed to superior advantages of STX versus WDC in the HDD (hard disk drive) sector.
Western Digital’s Strong Recent Fiscal 3Q 2024 Quarter
However, in the recent quarter ending March 2024, Western Digital reported earnings per share of $0.63 on revenue of $3.46B. The consensus expected earnings per share of $0.15 on revenue of $3.35B. Revenue was up 14% sequentially and 23% year-over-year....
Western Digital Outperformed Seagate For The First Time In 6 Quarters, But It Isn't Sustainable