HomeInvesting NewsStorage Leader Seagate Experiences a 6% Decline in Stock Price Due to...

Storage Leader Seagate Experiences a 6% Decline in Stock Price Due to ‘Dynamic’ Market Conditions

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Seagate Technology (NASDAQ:STX)

Wednesday saw a more than 6% decline in Seagate Technology (NASDAQ:STX) shares as the storage technology firm lowered its fiscal first-quarter revenue projection owing to a number of general economic problems like inventory corrections and supply chain interruptions. 

Before the start of the U.S. stock market, Seagate (NASDAQ:STX) said that it had revised its previous prediction of $2.35 to $2.65 billion in sales for the first quarter to a range of $2 billion to $2.2 billion. Chief Executive Officer of Seagate (NASDAQ:STX), David Mosley, stated in a statement that since the company’s last earnings release in mid-July, a number of “dynamic market conditions” have had an influence on Seagate’s business.

These circumstances, according to Mosley, include “weaker economic trends in certain Asian regions,” which have put pressure on stocks and supply chains, as well as “more cautious buying behavior” among clients of American cloud-business services and multinational corporations.

Seagate (NASDAQ:STX) also stated that its earnings, excluding one-time adjustments, will be “meaningfully below” its prior expectation of $1.20 per share as a result of the problems hurting its first-quarter sales. The first quarter of Seagate’s fiscal year (NASDAQ:STX) concludes on September 30.

The issues seem destined to last for the remainder of Seagate’s (NASDAQ:STX) fiscal year as well. Without providing specific numbers, the company stated that it was lowering its projected costs, production output, and capital investment plans for the fiscal year 2023.

More than three weeks after rival Western Digital (WDC) reported weaker-than-expected quarterly results and lowered its earnings and revenue guidance, STX issued a negative outlook.

Future Prospects

Our 20+ terabyte product family continues to experience strong demand, and we are still on schedule to cross over into the 18-terabyte platform in terms of volume and revenue in the third quarter of this year.

The long-term demand drivers for large capacity storage are still present, and the company is well-positioned to take advantage of these sizable future growth prospects thanks to its solid product roadmap and close customer connections, according to Mosley.

Featured Image-  Megapixl @Michaelvi

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