Seagate’s Earnings Fall Short as Demand for Disk Drives Weakens
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A Seagate tough generate from an Apple notebook personal computer. Desire is weakening in customer-similar marketplaces.
Brent Lwein/Bloomberg
The disk-generate corporation
Seagate
Technological innovation posted profits and earnings that ended up perfectly limited of anticipations, providing advice for the recent quarter that furthermore failed to meet up with Wall Street estimates.
The company is minimizing its prepared production in response to softer demand from customers, in specific from purchaser-struggling with “legacy” close marketplaces, like own computers.
For its fiscal fourth quarter, ended July 1, Seagate (ticker: STX) posted revenue of $2.6 billion, down 13% from a calendar year back, and down below the company’s forecast of $2.8 billion. Non-GAAP income had been $1.59 a share, well underneath the company’s projection of $1.90 a share.
Underneath typically acknowledged accounting concepts, the company acquired $1.27 a share. The Road consensus estimates were for $2.78 billion in revenue and gains of $1.88 a share.
Similarly, Seagate sees September quarter earnings of $2.5 billion, give or just take $150 million, with modified earnings of $1.40 a share. That is a substantial skip: Street estimates identified as for $3.03 billion in revenue and income of $2.27 a share.
For the fiscal calendar year, Seagate posted earnings of $11.7 billion, with gains of $8.18 a share, up from $10.7 billion and $5.64 a share a yr earlier.
In a assertion, Seagate CEO Dave Mosely said the company observed “stable mass ability storage desire,” in unique for cloud programs, offset by the affect of Covid-19 limits in Asia and the outcomes of a weaker international economic system on other markets, in particular those serving buyers.
“The confluence of macro-similar issues is continuing into the September quarter,” Moseley mentioned. “In this setting, we are lowering our output programs to keep provide self-control as our customers manage by means of macro uncertainty and on-likely non-HDD ingredient shortages, and we are diligently handling costs to defend profitability.”
Trading in Seagate shares was halted before the organization issued the earnings announcement. On Friday early morning, the inventory was down 10%. Shares of rival
Western Electronic
(WDC) are down 5.2% to $47.80.
Publish to Eric J. Savitz at [email protected]
