Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Seagate sees Q3 revenue in line with market estimates on recovering PC market

Published 24/01/2024, 23:08
© Reuters.
STX
-

By Yamini Kalia

(Reuters) - Seagate Technology (NASDAQ:STX) forecast its third-quarter revenue in line with analysts' estimates on Wednesday, in a sign that the ongoing recovery in the personal computer (PC) and cloud market will aid demand for its data storage products.

The introduction of artificial intelligence-powered PCs this year and a stabilizing economy are expected to help end a post-pandemic slump at data-storage solution providers.

Seagate expects revenue for the quarter ending March 31, 2024 to be $1.65 billion, plus or minus $150 million, compared with LSEG estimates of $1.64 billion.

The computer hard drive maker's results showed signs of recovery in the storage market from higher demand for high-capacity storage, said Benchmark analyst Mark Miller.

Dublin, Ireland-based Seagate is also trying to drum up demand by rolling hard-disk drives that offer mass storage at a lower cost than solutions offered by rivals such as Western Digital.

"Across the broader China markets, we project a relatively slower pace of recovery given the ongoing economic challenges within the region," said CEO Dave Mosley.

"However, some local governments announced further steps to support the region's economy, which our customers believe will bolster local demand across mass capacity markets in China in the second half of the calendar year," Mosley added.

© Reuters. A Seagate Tech external computer hard drive is shown in this photo illustration in Encinitas, California, U.S., January 23, 2017.   REUTERS/Mike Blake/File Photo

Seagate reported revenue of $1.56 billion for the second quarter, compared with analysts' average estimate of $1.55 billion, according to LSEG data.

The data-storage firm posted adjusted earnings of 12 cents per share, after three quarters of losses, versus analysts' expectations of a loss of 6 cents.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.