Why Seagate Technology (STX) Shares Are Trading Lower Today - Seagate Tech Hldgs (NASDAQ:STX)

Seagate Technology Holdings PLC STX slashed its outlook for the fiscal first quarter ending September 30, 2022, against a worsening macroeconomic backdrop.
Seagate now expects fiscal first-quarter revenue of $2.1 billion plus or minus $100 million, down from the previous guidance of $2.5 billion plus or minus $150 million, and the consensus of $2.52 billion.
Seagate cut its production output and expenses and moderated fiscal 2023 capital investments.
The combination of lower revenue, increased under-utilization charges, and a less favorable product mix in the September quarter will result in a sequential decline in margins, with non-GAAP EPS now expected to be meaningfully below the prior guidance of at least $1.20.
Seagate continues to see solid demand for its 20+ terabyte product family and remains on track for volume and revenue crossover with the 18-terabyte platform in the September quarter.
"Since our earnings call in mid-July, weaker economic trends in certain Asian regions have amplified customer inventory corrections and supply chain disruptions," said Dave Mosley, Seagate's chief executive officer.
Micron Technology, Inc MU expected Q4 revenue to come at or below the low end of the provided revenue guidance range. Based on the last guidance, Micron expects Q4 revenue of $6.8 billion to $7.6 billion. The consensus estimate was $9.05 billion.
Its expectations for CY22 industry bit demand growth for DRAM and NAND have declined amid macro uncertainties and supply chain constraints.
Peer Nvidia Corp NVDA offered cautious third-quarter revenue as gaming and professional visualization revenue declined.
Price Action: STX shares traded lower by 6.44% at $64.95 in the premarket on the last check Wednesday.

Market News and Data brought to you by Benzinga APIs

Why Are Seagate Shares Trading Lower Today

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga