- Seagate Technology Holdings PLC (NASDAQ: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 (NASDAQ: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 (NASDAQ: 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.
Tiger Global Lost $16 Billion In 4 Months, But Held These 2 Dividend Payers
As of Nov. 14, hedge funds are required to release what trades they have made over the course of the third quarter.
