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A Seagate exhausting drive from an Apple laptop computer laptop. Demand is weakening in consumer-related markets.
Brent Lwein/Bloomberg
The disk-drive firm
Seagate
Expertise posted gross sales and income that had been effectively in need of expectations, providing steering for the present quarter that likewise failed to satisfy Wall Road estimates.
The corporate is decreasing its deliberate manufacturing in response to softer demand, specifically from consumer-facing “legacy” finish markets, like private computer systems.
For its fiscal fourth quarter, ended July 1, Seagate (ticker: STX) posted income of $2.6 billion, down 13% from a yr in the past, and under the corporate’s forecast of $2.8 billion. Non-GAAP income had been $1.59 a share, effectively under the corporate’s projection of $1.90 a share.
Beneath typically accepted accounting rules, the corporate earned $1.27 a share. The Road consensus estimates had been for $2.78 billion in income and income of $1.88 a share.
Likewise, Seagate sees September quarter income of $2.5 billion, give or take $150 million, with adjusted income of $1.40 a share. That may be a large miss: Road estimates known as for $3.03 billion in income and income of $2.27 a share.
For the fiscal yr, Seagate posted income of $11.7 billion, with income of $8.18 a share, up from $10.7 billion and $5.64 a share a yr earlier.
In a press release, Seagate CEO Dave Mosely stated the corporate noticed “stable mass capacity storage demand,” specifically for cloud purposes, offset by the affect of Covid-19 restrictions in Asia and the results of a weaker international economic system on different markets, specifically these serving shoppers.
“The confluence of macro-related challenges is continuing into the September quarter,” Moseley stated. “In this environment, we are reducing our production plans to maintain supply discipline as our customers manage through macro uncertainty and on-going non-HDD component shortages, and we are diligently managing expenses to protect profitability.”
Buying and selling in Seagate shares was halted earlier than the corporate issued the earnings announcement. Shares of rival
Western Digital
(WDC) are down 6.6%, to $47.11.
Write to Eric J. Savitz at [email protected]
