-Seagate Know-how Holdings lowered its first-quarter earnings expectations on Wednesday as an financial slowdown hits orders for its knowledge storage merchandise from sure Asian markets and enterprise clients.
Demand for exhausting disks and server storage merchandise has dried up this yr as decades-high inflation pressures the budgets of customers and corporations, ending the business’s pandemic increase.
“Since our earnings name in mid-July, weaker financial developments in sure Asian areas have amplified buyer stock corrections and provide chain disruptions,” stated Chief Government Officer Dave Mosley.
Seagate’s inventory fell 6% in premarket buying and selling, with the transfer additionally dragging down rivals Micron Know-how and Western Digital Corp by 1.1% and 4.4%, respectively.
The California-based firm now expects income of $2.1 billion plus or minus $100 million, down from $2.35 billion to $2.65 billion.
Seagate additionally plans to idle some manufacturing capability, a transfer that's anticipated to push down margins regardless of efforts to decrease bills and capital investments.
Adjusted revenue is estimated to be “meaningfully under” the prior steerage of no less than $1.20 per share, the corporate stated.
Micron Know-how additionally reduce its income forecast earlier this month as buyer inventories pile up amid waning demand for chips utilized in private computer systems and smartphones.
Post a Comment