Western Digital (WDC, Financial) reported a significant turnaround in its latest fiscal quarter, driven by a surge in demand for data center storage products, a trend fueled by the rapid adoption of artificial intelligence. The company posted a profit of $493 million, or $1.35 per share, for the first quarter of fiscal year 2024, ending September 27. This marks a substantial recovery from the net loss of $700 million, or $2.17 per share, recorded in the same period last year.
Adjusted earnings stood at $1.78 per share, surpassing analysts' expectations of $1.71 per share as surveyed by FactSet. Revenue climbed nearly 50% to approximately $4.1 billion, slightly below the analysts' projected $4.12 billion.
The growth was primarily driven by a 153% increase in cloud business sales year-over-year, thanks to the higher shipments of nearline storage products targeted at data center customers. Additionally, client sales saw a 5% rise, while consumer sales experienced a 7% decline.
