On January 29 (Reuters) - Western Digital Corp, a manufacturer of data storage products, predicted third-quarter revenue below Wall Street expectations due to anticipated reduced demand from cloud and corporate clients. The decline in investments driven by high borrowing costs and economic uncertainty has substantially impacted the market for memory chips following an initial surge during the pandemic, which has adversely affected companies like Western Digital.
In January, the company indicated that it was anticipating reporting earnings per share at the lower end of its projected range, citing a challenging pricing environment in its flash business.
Western Digital anticipates third-quarter revenue to fall within $3.75 billion to $3.95 billion, below analysts' average projection of $4 billion, according to data from LSEG. Expected adjusted earnings per share range from 90 cents to $1.20, compared to estimates of $1.47.
For the second quarter, the company recorded revenue of $4.29 billion, slightly surpassing analysts' average forecast of $4.26 billion. Adjusted earnings per share were $1.77, slightly below estimates of $1.78 per share.
Recently, Seagate Technology, a competitor, also forecasted third-quarter revenue.