DUBLIN (dpa-AFX) - Hard-drive maker Western Digital Corp. (WDC) said Wednesday after the markets closed that its third quarter profit fell 19% from last year, as higher expenses more than offset a 24% increase in revenue.
However, the company's quarterly earnings per share, excluding items, came in well above analysts' expectations as did its quarterly revenue.
'Strong execution by our HGST and WD subsidiaries drove outstanding results in the March quarter as we continue to capitalize on the secular growth of digital data,' said Steve Milligan, president and chief executive officer. 'Overall industry demand was in line with our expectations. In our business, we saw strength in enterprise, stable performance in client and consumer electronics, and some anticipated seasonal softness in Branded Products.'
Western Digital shares are currently gaining 3.69% in after hours trading after closing the day's regular trading session at $52.90, down 34 cents. The shares trade in a 52-week range of $28.31 to $54.53.
For the third quarter ended March 29, 2013, the Irvine, California-based company reported net income fof $391 million or $1.60 per share, compared to $483 million, or $1.96 per share for the year-ago quarter.
Excluding items, adjusted net income for the third quarter was $514 million or $2.10 per share, compared to $619 million or $2.52 per share in the prior year quarter.
On average, 23 analysts polled by Thomson Reuters expected the company to earn $1.77 per share for the third quarter. Analysts' estimates typically exclude special items.
Total operating expenses for the quarter jumped 48% to $644 million from $435 million a year ago.
Revenue for the third quarter rose to $3.76 billion from $3.04 billion in the same quarter last year. Twenty-one analysts had a consensus revenue estimate of $3.61 billion for the third quarter.
The company shipped 60.2 million hard-drives during the third quarter quarter, up 36% from 44.2 million units in the prior year quarter.
Western Digital has made a phenomenal recovery after its manufacturing facilities in Thailand were hit by devastating floods in 2011.
Rival Seagate Technology plc (STX) is expected to report third quarter financial results on May 1. Analysts expect the company to earn $1.15 per share on revenue of $3.37 billion for the quarter.
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