SanDisk shares climbed more than 5% on Tuesday after Western Digital reported second-quarter results that exceeded market expectations and provided an upbeat outlook for the full year.
The Milpitas, California-based company, which operates under the SanDisk brand, posted adjusted earnings of $1.25 per share on revenue of $3.4 billion for the quarter ended June 30. Analysts polled by Refinitiv had expected earnings of $1.18 per share on revenue of $3.3 billion.
Western Digital raised its full-year adjusted earnings guidance to a range of $4.50 to $4.90 per share, up from its prior forecast of $4.20 to $4.70 per share. The company also increased its revenue guidance to $13.8 billion to $14.2 billion, from a previous range of $13.5 billion to $13.9 billion.
Management cited stronger demand for flash memory products, particularly in data center and mobile storage segments, as key drivers behind the improved outlook. The company also highlighted cost efficiencies and supply chain optimizations as contributing factors to its better-than-expected profitability.
Western Digital’s shares have gained roughly 12% over the past month, outperforming the broader tech sector, which has risen about 4% during the same period. The stock’s recent rally follows a period of volatility amid shifting demand patterns in the semiconductor industry.
Analysts at Jefferies reiterated their buy rating on Western Digital, citing the company’s strong execution and favorable industry trends. The stock closed at $52.10 on Monday, up 5.3% intraday on Tuesday.
