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Western Digital (WDC.US) rises over 8% as cloud business sales soar in Q1, company turns profitable

Market IntelFriday, Oct 25, 2024 10:20 am ET

1min read

Western Digital (WDC.US) shares opened sharply higher on Friday, rising as much as 10% during the session, and were up 8.47% to $71.935 at the time of writing. The company reported a surge in sales of its cloud business in the first fiscal quarter of 2024, as the rapid adoption of artificial intelligence boosted demand for data center storage products, resulting in the company turning a profit.

Western Digital reported a profit of $493 million, or $1.35 per share, in the first fiscal quarter of 2025, which ended September 27, compared with a net loss of $700 million, or $2.17 per share, in the year-ago period. Adjusted earnings per share were $1.78, topping the $1.71 expected by analysts surveyed by FactSet. Revenue rose nearly 50% to about $4.1 billion, topping analysts' expectations of $4.12 billion. Sales of nearline storage products for data center customers, which are delivered in the cloud, surged 153% year over year, leading the company's overall revenue growth.

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