Seagate Technology (STX.O) has announced an optimistic forecast for its second-quarter profit, anticipating results that exceed Wall Street expectations, driven by robust demand from cloud customers. In a report released Tuesday, the company attributed its strong performance to a significant increase in orders for memory chips from global cloud service providers.
As these providers enhance their infrastructure to accommodate expanding cloud computing workloads and new AI-related initiatives, they are investing heavily in hardware, benefiting manufacturers like Seagate.
The company projects an adjusted profit of $1.85 per share for the upcoming quarter, with a margin of 20 cents in either direction, surpassing the consensus estimate of $1.73, as per LSEG data. Seagate also expects second-quarter revenue to reach approximately $2.30 billion, plus or minus $150 million, aligning closely with estimates of $2.29 billion.
In its first-quarter results, which ended on September 27, Seagate reported revenue of $2.17 billion, exceeding analysts’ predictions of $2.13 billion. The firm also delivered adjusted earnings of $1.58 per share for the quarter, outperforming the average estimate of $1.48 per share, further illustrating its strong market position amid an evolving economic landscape.
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