Meanwhile, shares of Western Digital Corp. reversed course and fell 6.2% to $33.08 as the hard-disk drive maker's second-quarter forecast came in below current expectations. The company said on its evening conference call it expects revenue of $3.55 billion to $3.7 billion and adjusted earnings of $1.65 to $1.85 a share. Wall Street had been expecting revenue of $4.09 billion and adjusted per-share earnings of $2.40.
Western Digital cited a "muted demand environment," a seasonal reduction in its gaming business and a planned reduction of its 3.5-inch contract manufacturing for Toshiba, as reason for the sales outlook. Shares of hard-disk drive maker Seagate Technology Inc. also fell in the wake of Western Digital's forecast, trading down 4.3% at $27.10.
Western Digital shares had been higher earlier in the session after the company logged fiscal first-quarter adjusted earnings of $2.36 a share, above Wall Street's projection of $2.29 a share. Revenue was $4 billion, higher than the $3.98 billion expected by Wall Street. Western Digital shipped 62.5 million hard drives during the quarter, up from 57.8 million drives a year ago.
By Carla Mozee
Oct 22, 2012 18:00:06 (ET)
LOS ANGELES (MarketWatch)
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