Seagate forecasts robust Q4 on steady demand for mass capacity storage

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(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)