(Reuters) – Seagate Technology on Tuesday projection third-quarter profits listed below experts’ quotes, anticipating slow-moving sales for its storage space tools utilized in computers as the computer market has a hard time to recover.
Despite the enhancement of on-device AI functions and an expected Windows 11 refresh cycle, end-market need for Computers has actually stayed low-key as the marketplace arises from among its worst depressions in years.
Seagate anticipates profits of $2.10 billion, plus or minus $150 million, for the 3rd quarter, compared to experts’ ordinary quotes of $2.19 billion, according to information put together by LSEG.
Global computer deliveries climbed regarding 1% to 245.3 million systems in 2024– noting the 2nd successive year delivery quantity has actually dipped listed below 250 million, according to research study company Gartner.
Seagate anticipates third-quarter modified revenue of $1.70 per share, plus or minus 20 cents, compared to quotes of $1.69.
The ugly projection additionally casts a darkness over assumptions of normalization in memory tool supply degrees, after a supply excess over the last 2 years drove cloud suppliers to cut down on orders in a quote to clear existing supply.
Analysts have actually stated that in 2025, cloud suppliers’ expanding financial investment in facilities to sustain generative AI growth might aid buoy sales for Seagate, which provides drive utilized to keep large quantities of information.
Seagate reported profits of $2.33 billion for the 2nd quarter finishedDec 27, mainly in accordance with quotes of $2.32 billion.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber)
