By Will Feuer
Shares of Western Digital were higher after the data-storage company said it plans to separate its two businesses and reported a narrower loss for the fiscal first quarter than Wall Street analysts had expected.
The stock rose more than 8% to $42.19 in morning trading. So far this year, shares are up about 34%.
The company said it will separate its business that makes traditional hard drives for computers from its flash-memory business, likely through a spinoff of the latter.
For the fiscal first quarter, which ended Sept. 29, Western Digital also reported a narrower adjusted loss than Wall Street analysts were anticipating. The company swung to a loss of $2.17 a share from a profit of 8 cents a share last year.
However, the adjusted loss of $1.76 a share was narrower than the loss of $1.91 a share that analysts were bracing for, according to FactSet.
For the fiscal second quarter, Western Digital is targeting a loss of $1.35 to $1.05 a share, narrower than analysts are expecting.
Write to Will Feuer at [email protected]
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