Seagate and Western Digital reported fiscal first quarters ending October 2. Both are now focused on hard drives, making this a more useful operating comparison than older results that include Western Digital's separated flash business. Western Digital had slightly more revenue and a slightly higher GAAP gross margin; Seagate reported more free cash flow under each company's reconciled definition. Neither quarterly snapshot decides which share is better value. Seagate results · Western Digital results
The quarter in numbers
Western Digital reported $4.38 billion of revenue against Seagate's $4.23 billion, a $148 million lead. Western Digital's GAAP gross margin was 57.8%; Seagate's was 57.3%. These are close, but the differences are real. Seagate reported GAAP diluted EPS of $7.59 and Western Digital $4.63; per-share EPS does not compare the two businesses or valuations by itself because share counts and prices differ.
Seagate generated $1.69 billion of operating cash and company-defined free cash flow of $1.48 billion after $211 million of property and equipment. Western Digital generated $1.60 billion of operating cash and company-defined free cash flow of $1.38 billion after $227 million of net property and equipment. The bridges are similar in this quarter, but the exact reconciliation and net-versus-gross capital-spending treatment still matter. Seagate's reported free cash flow exceeded Western Digital's by $102 million.
Seagate retired about $1.2 billion of debt during the quarter. Its additional $750 million retirement after quarter-end is a subsequent event and should not be folded into the quarter's cash-flow bridge.
What each company expects
Seagate guided its next-quarter revenue to $4.8 billion, plus or minus $0.1 billion. Western Digital guided to $5.1 billion, plus or minus $0.1 billion. These are management forecasts, not sales already earned; the gap does not establish a winner without comparing margins, cash conversion, investment and the price of each stock.
Completed October 28 chart
STX finished October 28 at $697.97, up 4.51% from $667.85. It traded from $621.55 to $698.94 during the regular session. The close was above its 200-day average of $689.02 but below its 50-day average of $805.84, calculated from completed daily closes through October 28. A daily close above $698.94 would be more convincing near-term repair; a daily close back below $689.02 would weaken that picture.
WDC closed the same session at $396.42, up 4.08% from $380.88. It traded from $374.89 to $397.33. A daily close above $397.33 would extend the immediate move; a daily close back below $380.88 would unwind it. The prices are per share and are not directly comparable between companies.
This comparison uses the October 28 completed regular session and the fiscal quarter ended October 2. Market research only, not a recommendation to buy or sell.