STX Stock: Seagate Lowers Earnings Guidance

seagate technology (STX) said Wednesday it is lowering its earnings guidance for the first quarter of its fiscal year ending Sept. 30 on the back of weaker macroeconomic conditions. STX stock falls.


The company now expects first-quarter earnings of $2.1 billion, “plus or minus $100 million,” compared to previous guidance of $2.5 billion plus or minus $150 million.

It also expects adjusted earnings per share to be “substantially below its previous guidance of at least $1.20,” the company said in a press release.

Seagate is a leading manufacturer of disk drives and other storage products.it is mainly western digital (WDC).

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STX shares fell 4.3% to 66.40 during morning action on the stock market today. Western Digital’s stock fell 2% to 42.50.

STX Stocks: Bearish Trends, Supply Chain Issues

“Weak economic trends in certain Asian regions have exacerbated customer destocking and supply chain disruptions since the mid-July earnings release,” said Seagate Chief Executive Officer Dave Mosley. said. press release.

Mosley continues:

In response, Seagate said it was taking steps to minimize the impact on its business. This includes lower production volumes, lower costs and lower capital expenditures in 2023.

STX’s stock is down 42% this year.

Follow Brian Deagon on Twitter. @IBD_BDeagon Learn more about technology stocks, analytics and financial markets.

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