Western Digital Corporation (WDC) Bundle
A Brief History of Western Digital Corporation
Western Digital Corporation (WDC), founded in 1970, has evolved into a leading data storage solutions provider. The company is headquartered in San Jose, California, and specializes in manufacturing hard disk drives (HDD), solid-state drives (SSD), and other data storage technologies.
Financial Performance Overview (2024)
As of September 27, 2024, Western Digital reported a significant improvement in its financial performance compared to the previous year. The company achieved net revenue of $4.095 billion, which represented a 49% increase from $2.750 billion in the same quarter of the prior year.
| Financial Metric | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Net Revenue | $4.095 billion | $2.750 billion | 49% |
| Gross Profit | $1.551 billion | $99 million | 1,467% |
| Operating Income | $742 million | $(596) million | 124% (Turnaround) |
| Net Income | $493 million | $(685) million | 172% |
Segment Revenue Breakdown
Western Digital's revenue is primarily generated from two segments: HDD and Flash storage. For the three months ended September 27, 2024, the revenue from each segment was as follows:
| Segment | Q1 2024 Revenue | Q1 2023 Revenue | % Change |
|---|---|---|---|
| HDD | $2.211 billion | $1.194 billion | 85% |
| Flash | $1.884 billion | $1.556 billion | 21% |
Market Performance and Stock Data
As of September 27, 2024, Western Digital's common stock had a market capitalization of approximately $5.4 billion. The stock price has shown volatility, with a year-to-date performance reflecting a recovery from previous lows. The company continues to focus on enhancing its product offerings in both the HDD and SSD markets.
Debt and Financial Obligations
As of September 27, 2024, Western Digital's total debt stood at $7.450 billion. The company has several debt instruments, including:
- 3.00% convertible notes due 2028: $1.600 billion
- 4.75% senior unsecured notes due 2026: $2.300 billion
- Variable interest rate Term Loan A-2 maturing 2027: $2.550 billion
- 2.85% senior notes due 2029: $500 million
- 3.10% senior notes due 2032: $500 million
Cash Flow Analysis
In the first quarter of 2024, Western Digital generated cash flow from operating activities of $34 million, a significant recovery from a cash outflow of $(626) million in the same period of 2023. This reflects the company's improved operational efficiency and revenue growth.
| Cash Flow Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Cash Flow from Operating Activities | $34 million | $(626) million |
| Cash Flow from Investing Activities | $(45) million | $84 million |
| Cash Flow from Financing Activities | $(102) million | $554 million |
Future Outlook
Western Digital continues to adapt to changing market conditions, particularly in the data center and cloud storage sectors. The company is focused on innovation in flash memory technologies, which are expected to drive future growth.
A Who Owns Western Digital Corporation (WDC)
Major Shareholders
As of 2024, the ownership structure of Western Digital Corporation (WDC) is characterized by a mix of institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
- The Vanguard Group, Inc. - Approximately 8.3% ownership.
- BlackRock, Inc. - Approximately 7.5% ownership.
- State Street Corporation - Approximately 4.0% ownership.
- FMR LLC (Fidelity Management) - Approximately 3.5% ownership.
- Invesco Ltd. - Approximately 3.0% ownership.
Recent Changes in Ownership
In the last fiscal year, several institutional investors increased their stakes in Western Digital, indicating growing confidence in the company’s strategic direction. Notably:
- Vanguard increased its holding by 1.2%.
- BlackRock increased its stake by 0.9%.
- FMR LLC reduced its position by 0.5%.
Insider Ownership
Insider ownership remains relatively low, with executive officers and board members collectively owning approximately 1.5% of the company. Key insiders include:
- David Goeckeler, CEO - owns approximately 0.3%.
- Mark Long, CFO - owns approximately 0.2%.
- Other executives and board members collectively own approximately 1.0%.
Stock Performance and Market Capitalization
As of September 27, 2024, Western Digital’s total market capitalization is approximately $10.2 billion, with stock trading at around $30.00 per share. This reflects a year-to-date increase of approximately 35% from the previous year.
| Category | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | Approx. 80% | Approx. 250 million shares |
| Insider Ownership | Approx. 1.5% | Approx. 5 million shares |
| Public Ownership | Approx. 18.5% | Approx. 58 million shares |
Top Institutional Investors
The following table lists the top institutional investors of Western Digital Corporation along with their respective ownership percentages and the number of shares held:
| Institution | Ownership Percentage | Shares Held (in millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.3% | 25.9 |
| BlackRock, Inc. | 7.5% | 23.3 |
| State Street Corporation | 4.0% | 12.4 |
| FMR LLC | 3.5% | 10.9 |
| Invesco Ltd. | 3.0% | 9.3 |
Recent Shareholder Actions
In the recent quarter, Western Digital has seen a substantial increase in institutional buying as the technology sector rebounds. The company reported:
- A 14% increase in institutional ownership compared to the previous quarter.
- Increased demand for shares following positive earnings reports, highlighting improved profitability and revenue growth.
Conclusion on Ownership Dynamics
The ownership of Western Digital Corporation is predominantly held by institutional investors, with significant stakes from major investment firms. The company's market performance and strategic initiatives continue to attract interest from both institutional and retail investors.
Western Digital Corporation (WDC) Mission Statement
Company Overview
Western Digital Corporation (WDC) is a leading developer, manufacturer, and provider of data storage devices and solutions based on both hard disk drive (HDD) and NAND flash technologies. The company's mission is to enable the world's data to be stored, accessed, and transformed seamlessly.
Mission Statement
As of 2024, Western Digital's mission statement emphasizes innovation and reliability in data storage solutions, aiming to empower individuals and organizations to harness the power of their data.
Financial Performance Metrics
For the three months ended September 27, 2024, Western Digital reported significant financial metrics relevant to its mission:
| Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change |
|---|---|---|---|
| Net Revenue | $4,095 | $2,750 | 49% |
| Gross Profit | $1,551 | $99 | 1,467% |
| Operating Income | $742 | ($596) | 224% |
| Net Income | $493 | ($685) | 172% |
| Basic Earnings per Share | $1.40 | ($2.17) | 163% |
Revenue by Segment
The company's revenue streams are diversified across various segments, reflecting its mission to cater to different market needs:
| Segment | Q1 2025 Revenue (in millions) | Q1 2024 Revenue (in millions) | % Change |
|---|---|---|---|
| Cloud | $2,208 | $872 | 153% |
| Client | $1,209 | $1,147 | 5% |
| Consumer | $678 | $731 | (7%) |
Geographical Revenue Distribution
Revenue distribution across regions highlights Western Digital's global reach:
| Region | Q1 2025 Revenue (in millions) | Q1 2024 Revenue (in millions) |
|---|---|---|
| Asia | $1,837 | $1,551 |
| Americas | $1,690 | $662 |
| Europe, Middle East, and Africa | $568 | $537 |
Market Position and Strategy
Western Digital's commitment to innovation is demonstrated through its investment in research and development. The company allocated $519 million for R&D in Q1 2025, an increase of 20% from the previous year.
Debt and Financing Overview
As of September 27, 2024, Western Digital's debt structure included:
| Debt Type | Amount (in millions) | Maturity |
|---|---|---|
| Convertible Notes (3.00% due 2028) | $1,600 | November 15, 2028 |
| Senior Unsecured Notes (4.75% due 2026) | $2,300 | 2026 |
| Term Loan A-2 | $2,550 | January 2027 | Other Senior Notes (2.85% due 2029) | $500 | 2029 |
| Other Senior Notes (3.10% due 2032) | $500 | 2032 |
| Total Debt | $7,450 |
Conclusion
Western Digital Corporation's mission statement reflects its commitment to innovation, quality, and comprehensive data solutions, which is supported by its robust financial performance and strategic market positioning.
How Western Digital Corporation (WDC) Works
Business Overview
Western Digital Corporation (WDC) is a leading provider of data storage solutions, specializing in both hard disk drives (HDD) and NAND flash technologies. The company serves multiple markets, including Cloud, Client, and Consumer segments.
Financial Performance
As of September 27, 2024, WDC reported a total revenue of $4,095 million, which represents a 49% increase compared to $2,750 million in the same period of 2023. The revenue breakdown by segment is as follows:
| Segment | Revenue (in millions) | Change (YoY) |
|---|---|---|
| HDD | $2,211 | 85% |
| Flash | $1,884 | 21% |
| Cloud | $2,208 | 153% |
| Client | $1,209 | 5% |
| Consumer | $678 | -7% |
Geographical Revenue Distribution
WDC's revenue by geography for the three months ended September 27, 2024, is detailed below:
| Region | Revenue (in millions) |
|---|---|
| Asia | $1,837 |
| Americas | $1,690 |
| Europe, Middle East and Africa | $568 |
Cost and Profit Analysis
The cost of revenue for the quarter was $2,544 million, resulting in a gross profit of $1,551 million and a gross margin of 37.9%. The gross margins for the segments were:
| Segment | Gross Profit (in millions) | Gross Margin |
|---|---|---|
| HDD | $843 | 38.1% |
| Flash | $732 | 38.9% |
Operating Expenses
Operating expenses for the quarter totaled $809 million, with the following breakdown:
| Expense Type | Amount (in millions) |
|---|---|
| Research and Development | $519 |
| Selling, General and Administrative | $242 |
| Litigation Matter | $3 |
| Employee Termination, Asset Impairment, and Other | $2 |
| Business Separation Costs | $43 |
Net Income and Earnings Per Share
WDC reported a net income of $493 million for the quarter, translating to a net income per share of $1.40 (basic) and $1.35 (diluted). This marks a significant recovery from a loss of $685 million in the prior year.
Debt and Financing
As of September 27, 2024, WDC's total debt was $7,400 million. The following table summarizes the debt structure:
| Debt Instrument | Amount (in millions) | Maturity |
|---|---|---|
| 3.00% Convertible Notes | $1,600 | 2028 |
| 4.75% Senior Unsecured Notes | $2,300 | 2026 |
| Variable Interest Rate Term Loan A-2 | $2,550 | 2027 |
| 2.85% Senior Notes | $500 | 2029 |
| 3.10% Senior Notes | $500 | 2032 |
Stock-Based Compensation
For the three months ended September 27, 2024, WDC recorded stock-based compensation expenses of $84 million, which included:
| Type | Amount (in millions) |
|---|---|
| RSUs and PSUs | $72 |
| Employee Stock Purchase Plan (ESPP) | $12 |
Research and Development Investments
WDC invested $519 million in research and development during the quarter, reflecting a commitment to innovation and product development.
Market Position and Customers
WDC's top 10 customers accounted for 51% of total net revenue for the quarter, with one customer alone contributing 14%.
How Western Digital Corporation (WDC) Makes Money
Revenue Streams
Western Digital Corporation generates revenue primarily from its sales of hard disk drives (HDD) and NAND flash memory products. As of the three months ended September 27, 2024, the company reported a total revenue of $4,095 million, a significant increase from $2,750 million in the same period the previous year.
| Revenue by Segment (in millions) | September 27, 2024 | September 29, 2023 |
|---|---|---|
| HDD | $2,211 | $1,194 |
| Flash | $1,884 | $1,556 |
| Total Revenue | $4,095 | $2,750 |
Market Segments
The company operates in three primary market segments: Cloud, Client, and Consumer. The revenue distribution for the three months ended September 27, 2024 is as follows:
| Revenue by End Market (in millions) | September 27, 2024 | September 29, 2023 |
|---|---|---|
| Cloud | $2,208 | $872 |
| Client | $1,209 | $1,147 |
| Consumer | $678 | $731 |
| Total Revenue | $4,095 | $2,750 |
Geographical Revenue Distribution
The geographical breakdown of revenue for the same period is as follows:
| Revenue by Geography (in millions) | September 27, 2024 | September 29, 2023 |
|---|---|---|
| Asia | $1,837 | $1,551 |
| Americas | $1,690 | $662 |
| Europe, Middle East and Africa | $568 | $537 |
| Total Revenue | $4,095 | $2,750 |
Cost of Revenue and Gross Profit
The cost of revenue for the three months ended September 27, 2024 was $2,544 million, resulting in a gross profit of $1,551 million, reflecting a gross margin of 37.9%. This is a substantial improvement from a gross profit of $99 million and a gross margin of 3.6% in the same period the previous year.
Operating Expenses
Operating expenses for the quarter included:
- Research and Development: $519 million
- Selling, General and Administrative: $242 million
- Total Operating Expenses: $809 million
Net Income
Western Digital reported a net income of $493 million for the three months ended September 27, 2024, compared to a net loss of $685 million in the prior year period. This translates to a net income per share of $1.40, up from a loss of $2.17 per share in the previous year.
| Net Income Summary (in millions) | September 27, 2024 | September 29, 2023 |
|---|---|---|
| Net Income (Loss) | $493 | ($685) |
| Net Income (Loss) per Common Share | $1.40 | ($2.17) |
Key Financial Metrics
Key financial metrics for the company as of September 27, 2024 include:
| Key Financial Metrics | Amount |
|---|---|
| Total Debt | $7,450 million |
| Cash and Cash Equivalents | $1,705 million |
| Operating Cash Flow | $34 million |
| Capital Expenditures | $825 million |
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Article updated on 8 Nov 2024
Resources:
- Western Digital Corporation (WDC) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Western Digital Corporation (WDC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Western Digital Corporation (WDC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.