(Reuters) – Seagate Technology on Tuesday projection third-quarter income listed beneath consultants’ quotes, anticipating slow-moving gross sales for its cupboard space instruments utilized in computer systems as the pc market has a tough time to recuperate.
Despite the enhancement of on-device AI capabilities and an anticipated Windows 11 refresh cycle, end-market want for Computers has really stayed low-key as {the marketplace} arises from amongst its worst depressions in years.
Seagate anticipates income of $2.10 billion, plus or minus $150 million, for the third quarter, in comparison with consultants’ strange quotes of $2.19 billion, in accordance with data put collectively by LSEG.
Global pc deliveries climbed concerning 1% to 245.3 million techniques in 2024– noting the 2nd successive yr supply amount has really dipped listed beneath 250 million, in accordance with analysis examine firm Gartner.
Seagate anticipates third-quarter modified income of $1.70 per share, plus or minus 20 cents, in comparison with quotes of $1.69.
The ugly projection moreover casts a darkness over assumptions of normalization in reminiscence software provide levels, after a provide extra during the last 2 years drove cloud suppliers to chop down on orders in a quote to clear present provide.
Analysts have really acknowledged that in 2025, cloud suppliers’ increasing monetary funding in services to maintain generative AI development may assist buoy gross sales for Seagate, which supplies drive utilized to maintain giant portions of knowledge.
Seagate reported income of $2.33 billion for the 2nd quarter finishedDec 27, primarily in accordance with quotes of $2.32 billion.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber)
