(Reuters) -Seagate Technology on Tuesday forecast fourth-quarter results above Wall Street estimates, signaling steady demand for its storage and cloud devices for mass capacity storage used in
Seagate Expects Strong Q4 Amid Rising Storage Demand
(Reuters) -Seagate Technology on Tuesday forecast fourth-quarter results above Wall Street estimates, signaling steady demand for its storage and cloud devices for mass capacity storage used in personal computers, sending the company's shares up 6% after the bell.
The data storage firm benefited from its updated on-device AI features and an anticipated Windows 11 refresh cycle.
"Our performance underscores the structural enhancements we've made to our business model and healthy supply/demand environment for mass capacity storage," CEO Dave Mosley said.
Businesses are now coming out of the worst slump seen last year in end-market demand for PCs, signaling a revival in demand for companies like Seagate.
Analysts say the demand for PCs and hardware also saw a rush prior to the early April deadline ahead of the Trump tariffs coming into effect, which eventually excluded electronics but benefited the hardware providers.
For the fourth-quarter, Seagate expects revenue to be at $2.40 billion, plus or minus $150 million, above analysts' estimate of $2.3 billion, according to data compiled by LSEG.
The company forecast adjusted earnings per share of $2.40 for the fourth quarter, above analysts' estimate of $2.07 per share.
The company posted revenue of $2.16 billion for the third quarter ended March 28, that surpassed estimates of $2.12 billion.
(Reporting by Kritika Lamba in Bengaluru; Editing by Shailesh Kuber)
