Investing com– Benchmark experts reduced Western Digital Corp (NASDAQ: WDC). to Hold on Thursday, mentioning placing difficulties that can influence the business’s monetary 2025 efficiency.
The company highlights softening NAND prices, weak need, and a diminishing market share as essential problems.
“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 continuous sluggishness in commercial and automobile NAND need.
These stress have actually led the company to decrease its FY25 projection from $8.16 to $7.57 in non-GAAP earnings per watered down share, with anticipated 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 problems is weak assistance from rival Micron Technology (NASDAQ: MU), which lately reported a consecutive decrease in NAND typical asking price (ASPs) and projection lower-than-expected little bit deliveries for its monetary 2nd quarter of 2025, describes the company.
They think Micron’s assistance mirrors more comprehensive market difficulties. The business’s forecasted monetary Q2 EPS series of $1.33 to $1.53 disappointed the agreement quote of $1.97, and its sales projection of $7.7 billion to $8.1 billion was well listed below assumptions of $8.97 billion.
Additionally, Micron expects its NAND supplies will certainly raise regardless of supply and capital investment decreases.
Western Digital’s market share has actually additionally endured, decreasing from the mid-teens to 10.5% over the previous 3 quarters. Benchmark connects this decrease to the business’s focus in customer markets, which Micron does not anticipate to recoup up until late 2025.
With these difficulties in mind, Benchmark has actually embraced an extra mindful position, specifying, “Growing FY25 concerns take us to Hold.”
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