Cloud customers have increased demand for storage chips, and Seagate has raised its profit forecast for the fourth quarter
Seagate Technology predicts that its fourth quarter profit will exceed Wall Street's expectations, after exceeding expectations in the most recent quarter due to increased demand from cloud customers for its storage chips.
According to LSEG data, Seagate expects quarterly adjusted earnings per share in June to be 70 cents, with a fluctuation of 20 cents, while analysts expect it to be 60 cents. The median revenue forecast is $1.85 billion, which is in line with expectations.
Seagate CEO Dave Mosley said in a statement, "Seagate's revenue increased by 6% in the March quarter, and non GAAP earnings per share more than doubled compared to the December quarter, thanks to improved cloud demand, strong operational and price execution capabilities."
Last year, storage device manufacturers were hit by major electronic product manufacturers such as computer and smartphone companies cutting orders due to weak demand. Although sales have rebounded this year, advances in artificial intelligence (AI) technology have stimulated demand for cloud computing, driving investment in data centers using Seagate storage chips.
Seagate announced an adjusted profit per share of 33 cents for the third quarter ending March 29th, higher than the expected 29 cents. However, revenue decreased by 11% to $1.66 billion, lower than expected.
Seagate CEO Dave Mosley said in a statement, "Seagate's revenue increased by 6% in the March quarter, and non GAAP earnings per share more than doubled compared to the December quarter, thanks to improved cloud demand, strong operational and price execution capabilities."
Last year, storage device manufacturers were hit by major electronic product manufacturers such as computer and smartphone companies cutting orders due to weak demand. Although sales have rebounded this year, advances in artificial intelligence (AI) technology have stimulated demand for cloud computing, driving investment in data centers using Seagate storage chips.
Seagate announced an adjusted profit per share of 33 cents for the third quarter ending March 29th, higher than the expected 29 cents. However, revenue decreased by 11% to $1.66 billion, lower than expected.