Seagate Raises Q4 Revenue, Gross Margin Guidance

| About: Seagate Technology (STX)

Seagate (NASDAQ:STX) Thursday afternoon increased its guidance for its fiscal fourth quarter ending July 3.

The disk-drive maker now sees revenue of $2.2 billion to $2.3 billion, ahead of previous guidance of $1.9 billion to $2.2 billion, and the Street consensus at $2.1 billion. The company now sees gross margin for the quarter of about 15%, up from a previous forecast range of 10.3%-11.3%.

Seagate says it now sees the total addressable market in the quarter as 120 million units or slightly higher, up from its previous estimate of 114 million units.

For the September quarter, the company sees revenue of $2.35 billion to $2.5 billion, with gross margin of about 18%, which the company said is ahead of plan “due to improved operational efficiencies and product management,” The Street has been expecting revenue of $2.27 billion for the quarter.

Seagate said the stronger than expected results in the current quarter reflect stronger unit demand and pricing, improved operational efficiencies and company and channel inventory below historic levels.

In late trading, STX is up 30 cents, or 3%, to $10.17.

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