Seagate sees Q3 revenue in line with market estimates on recovering PC market

By Yamini Kalia

(Reuters) – Seagate Technology forecast its third-quarter revenue in line with analysts’ estimates on Wednesday, in a sign that the ongoing recovery in the personal computer (PC) and cloud market will aid demand for its data storage products.

The introduction of artificial intelligence-powered PCs this year and a stabilizing economy are expected to help end a post-pandemic slump at data-storage solution providers.

Seagate expects revenue for the quarter ending March 31, 2024 to be $1.65 billion, plus or minus $150 million, compared with LSEG estimates of $1.64 billion.

The computer hard drive maker’s results showed signs of recovery in the storage market from higher demand for high-capacity storage, said Benchmark analyst Mark Miller.

Dublin, Ireland-based Seagate is also trying to drum up demand by rolling hard-disk drives that offer mass storage at a lower cost than solutions offered by rivals such as Western Digital.

“Across the broader China markets, we project a relatively slower pace of recovery given the ongoing economic challenges within the region,” said CEO Dave Mosley.

“However, some local governments announced further steps to support the region’s economy, which our customers believe will bolster local demand across mass capacity markets in China in the second half of the calendar year,” Mosley added.

Seagate reported revenue of $1.56 billion for the second quarter, compared with analysts’ average estimate of $1.55 billion, according to LSEG data.

The data-storage firm posted adjusted earnings of 12 cents per share, after three quarters of losses, versus analysts’ expectations of a loss of 6 cents.

(Reporting by Yamini Kalia in Bengaluru; Editing by Shilpi Majumdar)