Seagate Technology, a company based in Dublin, Ireland, has announced its financial forecasts for the next quarter, expecting higher profits than what Wall Street had predicted. This comes after the company exceeded profit expectations for the previous quarter, thanks to a surge in demand for its memory chips from cloud service providers.
For the quarter ending in June, Seagate anticipates earnings of about 70 cents per share, give or take 20 cents. This forecast is higher than the 60 cents analysts had projected, according to LSEG data. The company’s revenue expectations of $1.85 billion align with what market analysts had anticipated.
Dave Mosley, the CEO of Seagate, highlighted the company’s strong performance in the last quarter, noting significant improvements. “Our revenue for the March quarter went up by 6%, and our non-GAAP EPS more than doubled compared to the December quarter. This success stems from the increased demand from cloud services, our effective management, and our pricing strategies,” Mosley explained.
Last year, manufacturers of storage devices, including Seagate, faced challenges as companies making computers and smartphones reduced their orders due to decreased consumer demand. However, this year is looking different. The growing importance of artificial intelligence has led to a spike in cloud computing needs, prompting more investments in data centers that rely on Seagate’s chips.
Despite the optimistic profit outlook, Seagate’s revenue for the third quarter, which ended on March 29, was down 11% at $1.66 billion, which was below what analysts had expected. They did, however, manage to beat profit expectations with an adjusted profit of 33 cents per share, higher than the anticipated 29 cents.
Seagate’s competitor, Western Digital, is also set to report its quarterly results this Thursday.
