Cowen analyst Karl Ackerman said there was not much to dislike with Western Digital's Q2 report. The analyst said its result suggest the exit of a downturn and the entry of a recovery as demand fundamentals appear to be improving. He noted the company's execution int its core enterprise HDD business and said its remains one of his top three picks. Ackerman reiterated his Outperform rating and $88 price target on Western Digital shares.
Reports Q1 revenue $3.9B, consensus $3.83B. Client Devices increased 20%, Data Center Devices and Solutions revenue declined 26%, and Client Solutions declined 5% year-over-year. The company said, "While we are still managing through macro uncertainty, during the quarter we benefitted from strength particularly in the retail sector, driven by favorable macro and market dynamics, as well as the brand recognition of our products. Our diversified storage portfolio strategy implemented through our recently announced organizational structure will enable us to accelerate growth, improve our focus, and drive sustainable, long-term shareholder value."