Seagate Technology has forecasted a disappointing third-quarter revenue, projecting figures below analyst expectations due to weak sales of its storage devices for personal computers, as the PC market remains sluggish.
Key Points:
- Weakened PC Market: Despite the integration of on-device AI features and an expected Windows 11 refresh cycle, Seagate’s outlook reflects the ongoing struggles in the PC market. Global PC shipments in 2024 saw only a 1% rise, with the total number of units falling below 250 million for the second consecutive year.
- Revenue Forecast: Seagate anticipates third-quarter revenue to be around $2.10 billion, plus or minus $150 million. This forecast is below analysts’ average estimate of $2.19 billion, based on data from LSEG.
- Profit Estimates: Seagate expects an adjusted profit of $1.70 per share for the third quarter, which is slightly above analysts’ estimate of $1.69.
- Cloud and AI Prospects: While the forecast is gloomy for the near term, analysts suggest that the growing investment in infrastructure for generative AI development by cloud providers could provide a boost to Seagate’s sales in 2025. Seagate’s disk drives are crucial for storing vast amounts of data, making the company a key player in the evolving AI-driven tech landscape.
- Recent Performance: For the second quarter ending Dec. 27, Seagate reported revenue of $2.33 billion, in line with analysts’ expectations of $2.32 billion.
