ABBO News Analysis: Seagate Technology (NASDAQ: STX) Predicts Q1 Revenue Higher Than Wall Street Forecast

The recent developments surrounding Seagate Technology predict first-quarter revenue higher than Wall Street Forecast.

As per the announcements made by Seagate Technology (NASDAQ: STX) on July 23rd, 2024, first-quarter revenue is expected to exceed Wall Street predictions, spurred by heightened demand for memory chips from personal computing and data center customers. This announcement led to a 6.8% rise in Seagate’s shares during extended trading.

The Dublin-based hard drive manufacturer has seen a recovery in the memory device market following a downturn last year when PC manufacturers reduced chip orders amid weak sales.

As per the reports by analysts at ABBO News, the rise of AI-powered PCs and expectations of an economic rebound is anticipated to boost the data-storage solutions sector.

The PC market is poised to recover from a decline in orders following the surge in demand during the pandemic. According to International Data Corp, this recovery is evidenced by a 3% increase in global PC shipments in the second quarter of 2024.

PC shipments reached 64.9 million units at the end of June, marking the second consecutive quarter of growth after two years of decline. This fosters optimism for investments in data centers utilizing Seagate’s memory chips.

According to financial journalist Maria Reed from ABBO News, Seagate (NASDAQ: STX) forecasts first-quarter revenue of $2.10 billion, plus or minus $150 million, compared to LSEG’s estimate of $2.07 billion.

Marias’ report also infers that Seagate predicts an adjusted first-quarter profit of $1.40 per share, with a margin of 20 cents either way versus the expected $1.16 per share.

For the fourth quarter ending June 28, Seagate reported revenue of $1.89 billion, slightly above analysts’ average estimate of $1.87 billion.

The company posted adjusted earnings of $1.05 per share for the fourth quarter.

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