Seagate Technology (STX) - NASDAQ
  • Dec. 12, 2012, 4:09 PM

    In downgrading Seagate (STX -4.4%) to Underweight, JPMorgan's Mark Moskowitz cites not only a declining hard drive market, but also expectations of share loss following big gains in late 2011/early 2012 thanks to Thai manufacturing disruptions. JPM's research indicates Seagate stands to lose share in the enterprise and notebook hard drive markets over the next 6-12 months, as long-term deals with OEMs unwind. Those remarks could be why Western Digital (WDC -0.8%), which has a habit of rising/falling with Seagate, hardly budged.

    | Dec. 12, 2012, 4:09 PM
  • Dec. 12, 2012, 8:13 AM

    Seagate Technology (STX) is downgraded to Sell at JPMorgan, which cites a revision to shrinkage from growth in expected hard disk drive unit demand in 2013. Shares -3.6% premarket. Western Digital (WDC) -1.1% premarket.

    | Dec. 12, 2012, 8:13 AM | 2 Comments
  • Dec. 10, 2012, 7:04 PM

    More on Intel: Miller Tabak has become the latest in a line of firms to slash estimates on Intel and provide negative industry commentary along the way. The sales of Taiwanese contract manufacturers appear to have fallen 5% M/M in November, MT claims, even though November is seasonally strong. It now expects an 8% Y/Y sales drop for Q4, and argues Intel faces a "double headwind" of weak PC sales and excess inventory. Shares are still rated Neutral on account of Intel's valuation and dividend (4.5% yield). (previous: I, II)

    | Dec. 10, 2012, 7:04 PM | 1 Comment
  • Dec. 10, 2012, 10:38 AM

    Western Digital (WDC +3%) and Seagate (STX +3.3%) are up after WDC is named one of Barron's top 10 picks for 2013: the paper cites the hard drive maker's rock-bottom valuation, strong balance sheet, and pledge to return 50% of free cash flow to shareholders. It also likes the ongoing growth in storage demand even as PC sales falter; and the stable pricing that stems from WDC and Seagate's combined 80% share of the hard drive market. Seagate was named a top pick for 2012, and is up over 60% YTD.

    | Dec. 10, 2012, 10:38 AM | 1 Comment
  • Dec. 5, 2012, 1:57 PM

    Western Digital (WDC +8.4%) and Seagate (STX +4.6%) are up strongly in the absence of major news hitting the wires. WDC announced yesterday morning it would accelerate a dividend payment, but shares hardly budged in response. Low valuations - the hard drive makers both trade near 5x estimated FY13 EPS, and have sizable cash balances - could be enticing bargain-hunters. (previous)

    | Dec. 5, 2012, 1:57 PM | 4 Comments
  • Dec. 4, 2012, 12:20 PM
    Windows (MSFT) notebook unit sales fell 10% Y/Y on Black Friday, claims NPD, which recently estimated a 24% Y/Y drop for the first month of Windows 8 sales. Windows 8 gear made up 89% of notebook sales and sported an ASP of just $368; touchscreen devices made up only 3% of sales. Mac (AAPL) sales were flat Y/Y while Android (GOOG) tablets saw a 177% increase, though their ASP plunged to $151 from $219 (no doubt thanks to the Kindle Fire/Nexus 7). TV units rose 4%, but revenue fell 6% thanks to falling ASPs. Total consumer electronics sales fell 5.6%.
    | Dec. 4, 2012, 12:20 PM | 16 Comments
  • Nov. 30, 2012, 10:19 AM

    Strong price pressure could join the list of problems facing PC component suppliers, who are already struggling to deal with slumping volumes. Digitimes reports Taiwanese notebook contract manufacturers want component vendors to "lower their quotes for 2013" in order to offset the profit hit caused by declining system ASPs and lower utilization rates. DRAM prices have already tumbled, and Goldman argued yesterday Intel's ASPs are vulnerable.

    | Nov. 30, 2012, 10:19 AM
  • Nov. 29, 2012, 5:25 PM
    Seagate Technology (STX) declares $0.38/share quarterly dividend, 19% increase from prior dividend of $0.32. Forward yield 6.02%. For shareholders of record Dec 14. Payable Dec 28. Ex-div date Dec 12. (PR)
    | Nov. 29, 2012, 5:25 PM | 1 Comment
  • Nov. 29, 2012, 12:44 PM

    Seagate (STX -1.8%) and Western Digital (WDC -0.6%) trade lower after Cleveland Research argues there's downside risk to the companies' forecasts for 140M calendar Q4 industry hard drive shipments, which itself represents a major drop from prior expectations. NPD's latest U.S. PC sales figures don't reflect well on industry demand either.

    | Nov. 29, 2012, 12:44 PM
  • Nov. 28, 2012, 9:37 AM

    Channelnomics thinks Microsoft's (MSFT) claim it has sold 40M Windows 8 licenses could be evidence of channel-stuffing. It notes many of the licenses may currently exist as inventory held by OEMs and resellers, and that StatCounter estimates Win. 8 is currently used on a mere 1% of the 1.5B PCs in operation. Nomura's Rick Sherlund is cutting estimates on Microsoft today, and says new Asian data points to a 7% Y/Y Q4 drop in PC shipments; a prior reading suggested flat growth.

    | Nov. 28, 2012, 9:37 AM | 10 Comments
  • Nov. 20, 2012, 12:13 PM

    A few more companies that appear to be casualties of H-P's FQ4 disaster (I, II): IT services firms Infosys (INFY -2.9%), Wipro (WIT -1.6%), and Sapient (SAPE -1.4%), hard drive vendors Seagate (STX -1.4%) and Western Digital (WDC -2.5%), and middleware vendor/H-P acquisition rumor subject Tibco (TIBX -3.4%).  (previous)

    | Nov. 20, 2012, 12:13 PM
  • Nov. 20, 2012, 8:05 AM

    For whom H-P's (HPQ) FQ4 results toll: Dell (DELL) -1.9% premarket, Intel (INTC) -1.6%, AMD -1%. H-P reported a 14% Y/Y drop in PC revenue and 12% drops in both desktop and notebook shipments. The drop in commercial PC revenue (13%) was nearly as bad as the drop in consumer PC revenue (16%).

    | Nov. 20, 2012, 8:05 AM | 2 Comments
  • Nov. 19, 2012, 10:06 AM

    As Intel announces a CEO transition, Paul Thurrott reports Windows 8 PC sales have missed Microsoft's (MSFT) internal projections. He adds Microsoft is blaming the inability of OEMs to execute, though like others, he thinks that's far from the only culprit, and calls the OS a "Frankenstein’s monster mix of old and new that hides a great desktop upgrade under a crazy Metro front-end." Separately, Newegg says its Windows 8 sales are slow, though notebook demand is beginning to improve.

    | Nov. 19, 2012, 10:06 AM | 14 Comments
  • Nov. 12, 2012, 6:12 PM

    The PC industry could lose 50M-100M units in annual sales by 2015 thanks largely to the impact of mobile devices, argues Barclays in a depressing report. Barclays, which is cutting estimates for Dell (DELL) and H-P (HPQ), forecasts PC sales will fall another 4% next year to 338M, and total just 311.5M in 2015. On the other hand, it expects tablet sales to reach 182M next year and 300M in 2016. Longbow is also downbeat, claiming checks indicate notebook orders are being cancelled; ultrabook demand is soft, and Intel and AMD are cutting prices.

    | Nov. 12, 2012, 6:12 PM | 40 Comments
  • Oct. 31, 2012, 2:30 PM

    Seagate's (STX -2.4%) downbeat FQ2 guidance assumes a 5% Q/Q drop in hard drive ASPs, and factors an ongoing inventory correction. JPMorgan's Mark Moskowitz, reiterating a Neutral, thinks guidance for flat FQ3 ASPs is questionable in light of seasonality, and worries Seagate's struggles and huge stock buybacks could put its 4.6% dividend yield at risk. The company noted on its earnings call that shipments of high-margin enterprise drives were weaker than expected, and that it expects to spend $350M in buybacks in FQ2. (FQ1 miss)

    | Oct. 31, 2012, 2:30 PM
  • Oct. 31, 2012, 11:45 AM
    Seagate (STX -3.1%) falls to levels last seen in July after missing FQ1 estimates and guiding on its earnings call for FQ2 revenue of $3.5B, below a $3.9B consensus. The FQ1 miss occurred even though Seagate spent $669M to buy back 20.5M shares. Altogether, the company redeemed 17% of its outstanding shares in the 9 months ending Sep. 28. Seagate estimates industry hard drive shipments totaled 139M in FQ1, -11% Q/Q and -21% Y/Y. Western Digital (WDC) is nearly unchanged. (management comments - PDF) (WDC forecast: I, II)
    | Oct. 31, 2012, 11:45 AM
Company Description
Seagate Technology Plc engages in the provision of electronic data storage technologies and solutions. Its products and services include network attached storage, high performance computing, data protection appliances, internal hard drives, backup and recovery services, flash storage, and... More
Sector: Technology
Industry: Data Storage Devices
Country: United States