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Seagate Slashes Revenue, Margin Forecasts on Demand, Supply Issues (STX)

Hard drive maker Seagate Technology ( STX ) late Thursday lowered its fiscal fourth quarter revenue and margin forecasts, sending its shares lower in aftermarket trading.

The Dublin, Ireland-based company said it now expects fiscal fourth quarter revenues of around $4.5 billion, down from its prior outlook for "at least" $5 billion. Its adjusted gross margin is now expected to be 33.6%, compared with its previous 34.5% estimate.

CEO Steve Luczo commented, "Based on the macroeconomic concerns indicated by a broad base of customers, we are approaching the September quarter conservatively and aligning our business for a relatively flat addressable market and modest improvements in our product mix."

Seagate shares fell 82 cents, or -3.3%, in premarket trading Friday.

The Bottom Line

Seagate currently offers a 3.99% dividend yield, based on last night's closing price of $25.08 and the company's annualized dividend payout of $1 per share.

Seagate Technology ( STX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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