Data storage products maker Western Digital Corp forecast third-quarter revenue below Wall Street estimates on Wednesday, as it expects decreased demand from cloud and corporate customers.
High borrowing costs and economic uncertainty have forced businesses to reduce investments, significantly impacting demand for memory chips after a pandemic-driven boom, hurting companies such as Western Digital.
The company had earlier in January said it expected to report profit per share, excluding items, at the lower end of its forecast range due to a challenging pricing environment in its flash business.
Western Digital expects third-quarter revenue in the range of $3.75 billion to $3.95 billion, compared with analysts’ estimates of $4 billion, according to data compiled by LSEG.
It sees adjusted earnings per share in the range of 90 cents to $1.20, below estimates of $1.47.
The company’s second-quarter revenue came in at $4.29 billion, compared with analysts’ average expectations of $4.26 billion.
Its adjusted profit per share came in at $1.77, compared with estimates of $1.78 apiece.
Earlier this month, rival Seagate Technology forecast third-quarter revenue below analysts’ estimates.
