Seagate Technology Overcomes Supply Chain Issues
Seagate Technology (NASDAQ:STX) grew 7.9 percent yesterday following the report of their preliminary revenue figures that exceeded analysts’ predictions. The company said in a statement that sales were $3.1 billion to $3.2 billion in the fiscal second quarter, which ended Dec. 30. Seagate sold almost 47 million drives. The amount was boosted by its purchase of Samsung Electronics Co.’s hard-disk unit Dec. 19. According to Bloomberg, analysts had expected revenue to be $2.79 billion on average.
Seagate prevailed over supply-chain issues and enlarged the amount of storage on each drive to an average of 653 gigabytes. The industry also endured a destructive flood last year in Thailand, the center of its disk-drive manufacturing. Fortunately, Seagate’s plants weren’t hit by floodwaters, helping it recover quickly, unlike competitors.
Steve Luczo, chief executive officer of the Cupertino, said the results “reflect the hard work and resiliency of the Seagate teams and our strategic suppliers who are working to help the industry recover from the massive disruption.”
In the March quarter, Seagate predicts revenue of $4.2 billion to $4.5 billion. Analysts expect $3.6 billion on average. Gross margin will be at least 33 percent, up from about 30.5 percent in the period ended Dec. 30. Seagate says they will issue their final second-quarter results on Jan. 31.
Here’s how Seagate is reacting to the news today along with its core competitors:
Seagate Technology. (NASDAQ:STX): STX shares recently traded at $17.75, up $0.93, or 5.53%. They have traded in a 52-week range of $9.05 to $18.60. Volume today was 21,649,363 shares versus a 3-month average volume of 10,452,600 shares. The company’s trailing P/E is 16.21, while trailing earnings are $1.10 per share.
Western Digital Corp. (NYSE:WDC): WDC shares recently traded at $32.83, up $1.53, or 4.89%. They have traded in a 52-week range of $22.64 to $41.87. Volume today was 4,388,946 shares versus a 3-month average volume of 5,286,780 shares. The company’s trailing P/E is 10.06, while trailing earnings are $3.26 per share.
To contact the reporter on this story: Brooke Edge at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org