western digital (WDC) reported quarterly results late Tuesday, beating earnings expectations but falling short. WDC stock falls.
The disk drive and memory chip maker reported an adjusted loss of 42 cents per share on revenue of $3.11 billion. Analysts had expected Western Digital to show an adjusted loss of 15 cents on his $2.99 billion in earnings.
WDC’s share price plunged 7% to 40.82 during after-hours trading on the stock market today.
The report comes out at a time when the memory chip market is suffering one of the most difficult times ever. Western Digital’s report also follows that of its disc drive rivals. seagate technology (STX). Seagate last week reported better-than-expected earnings amid what the company called tough macroeconomic conditions.
WDC Shares: Talk About A Possible Merger
According to Bloomberg reports, Western Digital is rumored to be in preliminary talks about a possible merger with Japan’s Kioxia Holdings.
Bloomberg says Western Digital and Kioxia together will control a third of the NAND flash market, putting them on par with South Korea’s Samsung Electronics.
Kioxia was spun out from Toshiba. In addition, the two companies jointly produce flash memory chips in Japan.
In June, Western Digital announced a review of its strategic options following discussions with activist investor Elliott Investment Management. The plan could separate his two businesses: disk drives and memory chips.
The WDC stock also has an IBD Composite rating of 34 out of 99.
Follow Brian Deagon on Twitter. @IBD_BDeagon Learn more about technology stocks, analytics and financial markets.
You may also like:
Best Growth Stocks to Buy and Watch: See Updated IBD Stock List
How to use the 10-week moving average for buying and selling
Find the best long-term investments with IBD long-term leaders
IBD strains on the move: watch out for breakouts here
Inside the IBD 50: Stocks to Watch