By RTT News,
January 22, 2014, 07:20:00 PM EDT
(RTTNews.com) - Hard-drive maker Western Digital Corp. ( WDC ) said Wednesday after the markets closed that its second quarter profit rose 28% from last year, helped by higher revenue and lower provision for income tax.
The company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
"We executed well in the December quarter as we continue participating in the ongoing growth of data in all of our served markets," said Steve Milligan, Western Digital;s president and chief executive officer. "The industry TAM was slightly higher than anticipated driven by seasonal demand as we saw strength in gaming and branded products."
Western Digital shares are currently losing 2.07% in after hours trading after closing the day's regular trading session at $88.08, down 78 cents. The shares trade in a 52-week range of $44.44 to $90.44.
For the second quarter ended December 27, 2013, the Irvine, California-based company reported net income of $430 million or $1.77 per share, compared to $335 million or $1.36 per share for the year-ago quarter.
Excluding items, adjusted net income for the second quarter was $532 million or $2.19 per share, compared to $513 million or $2.09 per share in the prior year quarter.
On average, 23 analysts polled by Thomson Reuters expected the company to earn $2.08 per share for the second quarter. Analysts' estimates typically exclude special items.
Gross margin for the second quarter improved to 28.7% from 27.7% a year earlier, while operating margin shrank to12.0% from 12.5% last year.
Revenue for the second quarter rose 4% to $3.97 billion from $3.82 billion a year ago. Twenty analysts had a consensus revenue estimate of $3.85 billion for the second quarter.
During the second quarter, Western Digital repurchased 2.0 million shares of its common stock for $150 million.
In November, Western Digital appointed Tim Leyden as its new chief financial officer. He succeeded Wolfgang Nickl, who resigned to join ASML in his native Europe.
Rival Seagate Technology PLC (STX) is scheduled to report second quarter financial results on January 27. Analysts currently expect the company to earn $1.38 per share on revenue of $3.56 billion for the second quarter.
For comments and feedback: contact firstname.lastname@example.org