Seagate Technology (STX) - NASDAQ
  • Sep. 21, 2012, 2:25 PM

    Though Seagate (STX +2.6%) and Western Digital (WDC +2.8%) are up following the former's analyst day guidance, hard drive controller chip suppliers LSI (LSI -1.1%) and Marvell (MRVL -1.8%) have ticked lower. That's a sign the Street is less pleased with Seagate's unit shipment guidance than it is with its pricing and margin commentary. The shipment guidance arguably has negative implications for PC sales.

    | Sep. 21, 2012, 2:25 PM | 1 Comment
  • Sep. 21, 2012, 2:19 PM

    Seagate (STX +3%) rallies after using its analyst day (webcast) to guide for FQ1 (Sep. quarter) revenue of $3.7B-$3.8B, below prior guidance of $4B. That's better than was feared given soft PC sales and Western Digital's (WDC +3.2%) recent warning. Also, Seagate is leaving its gross margin guidance unchanged at 30%, and says pricing is stable. However, it expects the FQ2 hard drive market to amount to just 150M-155M units, well below initial expectations (per Stifel) of 185M. (analyst day slides - 90MB PDF)

    | Sep. 21, 2012, 2:19 PM
  • Sep. 13, 2012, 6:37 PM

    Western Digital (WDC) -2.1% AH after warning it expects FQ1 (ends Sep. 28) revenue of $3.9B-$4B, below prior guidance of $4.2B-$4.3B and a consensus of $4.33B. The company also forecasts the hard drive market will total 140M units in the quarter vs. prior guidance of 157M, no doubt due to poor PC demand. WDC is softening the blow by establishing a $0.25/share quarterly dividend (2.4% yield), and boosting its stock buyback program by $1.5B. STX -2.4%. LSI and MRVL down slightly.

    | Sep. 13, 2012, 6:37 PM | 3 Comments
  • Sep. 13, 2012, 5:03 PM

    Western Digital (WDC) plans to launch hard drives filled with helium gas next year, using technology from its Hitachi unit. WDC boasts the drives, which will be aimed at the lucrative data center market, can lower power consumption by 23% and increase capacity by 40% over current models. Seagate (STX) has traditionally held the upper hand on WDC in the data center market, though both firms are now facing tough competition from flash storage providers such as Fusion-io (FIO).

    | Sep. 13, 2012, 5:03 PM | 1 Comment
  • Sep. 11, 2012, 5:00 PM

    Xyratex (XRTX) -25.4% AH after warning it expects FQ3 revenue of $271M-$276M, well below a guidance range of $313M-$373M and a consensus of $344.6M. The company blames lower demand from enterprise storage OEM customers, as well as delayed sales for hard drive manufacturing and high-performance computing storage gear due to a failure to meet technical requirements. OEM customer NetApp (NTAP) is down 2.6% AH. STX -1.2%. WDC -1.1%.

    | Sep. 11, 2012, 5:00 PM | 2 Comments
  • Sep. 10, 2012, 12:40 PM

    Seagate (STX -1.9%) receives its fourth downgrade in three weeks; this time, it comes from Argus' Jim Kelleher. Like his downgrading peers, Kelleher sees weak PC demand hurting Seagate. He also thinks a mix shift towards low-end PCs will hurt sales of Seagate's costlier PC hard drives, and that Intel's comments about weak enterprise demand don't bode well for Seagate's high-margin server/storage hard drive sales. (prior downgrades: I, II, III)

    | Sep. 10, 2012, 12:40 PM | 2 Comments
  • Sep. 7, 2012, 1:14 PM
    "We anticipate the worst 2H for PC sales since inception," says Citi's Gen Yeung, responding to Intel's (INTC -3.5%) Q3 warning. Yeung and many others have been raising alarm bells about PC demand in advance of Windows 8's (MSFT -1.8%) Oct. 26 consumer launch. FBR notes PC and storage inventories are at elevated levels, and Longbow believes Intel is seeing an inventory correction related to soft ultrabook uptake. The Intel Developer Forum kicks off on Tuesday.
    | Sep. 7, 2012, 1:14 PM | 34 Comments
  • Sep. 7, 2012, 12:49 PM

    Stock buybacks are nice, but history suggests companies tend to do so just when profits (and the share price) are at their plumpest. Here are a few companies buying back shares trading at a discount to the market multiple: AET, DELL, HPQ, STX, WDC, LLL, NOC, GME.

    | Sep. 7, 2012, 12:49 PM | 1 Comment
  • Sep. 7, 2012, 10:12 AM
    Intel's (INTC -2.8%) warning is hurting other chip stocks with strong PC exposure: AMD -3.4%. NVDA -4.5%. MU -4.6%. H-P (HPQ -1.4%), Microsoft (MSFT -1.3%), Seagate (STX -1.6%), and Western Digital (WDC -1.4%) are off moderately, though Dell (DELL +0.9%) is higher after declaring its first dividend. Analysts had been slashing estimates (I, II, III) for Intel ahead of the warning thanks to a torrent of negative PC data - that seems to be limiting the damage.
    | Sep. 7, 2012, 10:12 AM | 4 Comments
  • Sep. 6, 2012, 9:48 AM

    Seagate (STX -4.2%) drops after Needham's Richard Kugele downgrades to Underperform. Kugele's talks with industry players indicate demand is weak notonly for desktop and notebook hard drives (unsurprising), but also for enterprise (server/storage) drives. He's also cutting his PT for Western Digital (WDC -0.4%), but reiterates a Strong Buy due to conservative guidance and the expected benefits of integrating Hitachi's hard drive ops and internally sourcing drive heads. (S&P) (Stifel)

    | Sep. 6, 2012, 9:48 AM | 2 Comments
  • Aug. 29, 2012, 5:04 PM

    Western Digital (WDC) and Seagate (STX) accounted for 87% of the hard drive market in Q2, estimates IHS iSuppli. Western, having recovered from disruptions caused by Thai flooding, saw its share rise to 45%. Seagate's slipped to 42%, and Toshiba made up the remaining 13%. Depressed valuations and expectations Seagate and Western's near-duopoly power will continue yielding favorable pricing have fueled a strong summer rally in the companies' shares, in spite of weak PC sales.

    | Aug. 29, 2012, 5:04 PM
  • Aug. 27, 2012, 6:06 PM

    Notebook display panel prices have dropped in August due to weak demand, claims DisplaySearch. This comes on top of recent reports of falling PC DRAM prices, and is another sign PC component suppliers could be facing intense pricing pressure in 2H to go with soft unit shipments, thanks to the industry's woes. All eyes are on Windows 8's (MSFT) Oct. 26 launch. (Intel estimate cuts)

    | Aug. 27, 2012, 6:06 PM
  • Aug. 24, 2012, 1:59 PM

    After looking at Dell (DELL) and H-P's (HPQ) awful July quarter PC sales data (I, II), IDC now predicts PC shipments will be up only 0.9% in 2012. Even that forecast could prove optimistic, given the decline seen in Q2. U.S. shipments are expected to fall 3.7%, after having already fallen in 2011. IDC continues to expect double-digit notebook shipment growth in later years due to emerging markets demand, but the tablet market's rapid growth makes that far from a sure thing.

    | Aug. 24, 2012, 1:59 PM | 1 Comment
  • Aug. 23, 2012, 2:04 PM
    In addition to H-P's PC data, Seagate (STX -4.2%) is getting hurt by a downgrade to Hold from S&P's Jim Yin. Yin says he has become "more cautious" about back-to-school and holiday PC demand due to weak macro conditions and tablet demand. He also suggests Seagate's efforts to compete with solid-state drives (SSDs) with thinner "hybrid" hard drives featuring flash memory aren't enough, given the size and power advantages of SSDs. (earlier) (Stifel downgrade)
    | Aug. 23, 2012, 2:04 PM | 3 Comments
  • Aug. 23, 2012, 11:28 AM
    Seagate (STX -3.5%) has bought bankrupt Solyndra's giant Fremont, CA manufacturing plant. It's unwknown whether Seagate, currently based out of nearby Scotts Valley, plans to make the building its new HQ, use it for hard drive assembly, or both. Shares are selling off today in response to H-P's weak PC sales data, and so are those of rival Western Digital (WDC -2%).
    | Aug. 23, 2012, 11:28 AM
  • Aug. 20, 2012, 9:16 AM
    Seagate (STX) -1.5%  to $35.12 after Stifel's Aaron Rakers downgrades to Hold on valuation grounds. Seagate has a 117% YTD gain, Rakers points out, compared with 47% for archrival Western Digital (WDC) and 13% for the S&P. Nonetheless, he thinks shares could rally to the high-$30s/low-$40s range thanks to a positive September analyst meeting and favorable hard drive supply/demand and margin trends. Seagate still only has a trailing P/E of 5.5.
    | Aug. 20, 2012, 9:16 AM | 4 Comments
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