Western Digital (NASDAQ:WDC), the data-storage firm, is set to divide its hard drive and flash-memory segments in a planned spinoff. This announcement led to an 8% surge in the company’s stock price to $42.19 on Monday. This increase adds to the 34% annual rise in the company’s shares.
Despite this positive market reaction, Western Digital reported a downturn in its financial performance for the fiscal first quarter. The company recorded an adjusted loss of $2.17 per share, a significant drop from the previous year’s profit of 8 cents per share. However, this loss was narrower than the estimated $1.91 per share loss predicted by analysts.
Looking ahead, Western Digital has projected a fiscal second-quarter loss target set between $1.35 and $1.05 per share. The company’s decision to split its business segments comes amid these financial challenges, with the market reacting positively to the strategic move.
