Benchmark downgrades Western Digital on increasing FY25 issues

Date:

Share post:


Investing com– Benchmark specialists decreased Western Digital Corp (NASDAQ: WDC). to Hold on Thursday, mentioning inserting difficulties that may affect the enterprise’s financial 2025 effectivity.

The firm highlights softening NAND costs, weak want, and a diminishing market share as important issues.

“We see a growing number of concerns for Western Digital,” Benchmark specified, indicating “softening NAND pricing driven by customer inventory adjustments in consumer markets” and steady sluggishness in business and vehicle NAND want.

These stress have truly led the corporate to lower its FY25 projection from $8.16 to $7.57 in non-GAAP earnings per watered down share, with anticipated gross sales decreased from $17.4 billion to $16.7 billion.

“At a recent investor conference, CEO David Goeckeler indicated the firm was seeing more pricing headwinds than previously anticipated with these headwinds expected to continue in the next quarter,” claimed Benchmark.

Compounding these issues is weak help from rival Micron Technology (NASDAQ: MU), which currently reported a consecutive lower in NAND typical asking value (ASPs) and projection lower-than-expected little bit deliveries for its financial 2nd quarter of 2025, describes the corporate.

They suppose Micron’s help mirrors extra complete market difficulties. The enterprise’s forecasted financial Q2 EPS sequence of $1.33 to $1.53 upset the settlement quote of $1.97, and its gross sales projection of $7.7 billion to $8.1 billion was properly listed under assumptions of $8.97 billion.

Additionally, Micron expects its NAND provides will definitely increase no matter provide and capital funding decreases.

Western Digital’s market share has truly moreover endured, reducing from the mid-teens to 10.5% over the earlier 3 quarters. Benchmark connects this lower to the enterprise’s focus in buyer markets, which Micron doesn’t anticipate to recoup up till late 2025.

With these difficulties in thoughts, Benchmark has truly embraced an additional conscious place, specifying, “Growing FY25 concerns take us to Hold.”

Related Articles

Benchmark downgrades Western Digital on growing FY25 concerns

Taiwan’s China Airlines splits $12-billion jet deal between Boeing and Airbus

25 US stocks for 2025: UBS’s highest conviction calls



Source link

spot_img

Related articles

Asian markets monitor Wall St rally as United States rising price of dwelling alleviates value fears

Asian markets climbed Monday after massive positive factors on Wall Street, with buyers inviting below-forecast United States...

Asian Stocks Rise as United States Data Stoke Rate Cut Bets

(Bloomberg)– Asian provides climbed up after the Federal Reserve’s appreciated rising price of dwelling scale was out...

Guide To Handling The Audience Privacy Dilemma In 2025 

In 2024, advertising and marketing struck a remodeling issue. Audiences ended up being louder in style management...

Moonpig releases AI-driven handwriting gadget

The consolation of sending out a card on-line is exceeded by one important draw back, the one...