Western Digital, a leading data-storage company, has revealed its intentions to split its two businesses and has reported a narrower loss for the fiscal first quarter, exceeding expectations from Wall Street analysts.
Positive Market Reaction
Following this announcement, Western Digital's stock experienced a surge of over 8% in morning trading, reaching $42.19. So far this year, shares have seen a notable increase of approximately 34%.
Separating Business Segments
The company has decided to separate its traditional hard drive manufacturing business from its flash-memory business. This separation will likely be achieved through a spinoff of the latter.
Better-Than-Expected Q1 Performance
For the fiscal first quarter, which concluded on September 29th, Western Digital reported a narrower adjusted loss compared to what Wall Street analysts had predicted. The company transitioned from a profit of 8 cents per share last year to a loss of $2.17 per share.
However, the adjusted loss of $1.76 per share was narrower than the anticipated loss of $1.91 per share forecasted by analysts according to FactSet.
Optimistic Outlook for Q2
Looking ahead, Western Digital is aiming for a reduced loss within an estimated range of $1.35 to $1.05 per share for the fiscal second quarter. This projected loss is narrower than what analysts were expecting.
Volkswagen shares rise following completion of audit at jointly owned factory in China, with no evidence of human-rights violations found. The findings provide...
U.S. airlines are hopeful for a record-breaking Thanksgiving travel season to bolster their outlook after facing challenges.
California is raising the minimum wage for health care workers to $25 per hour, a historic investment made possible by labor unions' lobbying efforts. The wage...