Seagate issues soft guidance, shares -4.5% AH

|About: Seagate Technology (STX)|By:, SA News Editor

Seagtate (STX) guides on its FQ1 CC for FQ2 revenue of $3.5B-$3.6B, below a $3.64B consensus. The hard drive giant sees its gross margin staying flat Q/Q after rising 55 bps in FQ1 to 28.5%.

Shares are lower due to the guidance and Seagate's FQ1 miss. Western Digital (WDC), which fell last week after beating FQ1 estimates and issuing below-consensus FQ2 guidance, is down only slightly for now.

Seagate's hard drive ASP was $62 in FQ1, down from $63 in FQ4 and the year-ago period. WDC, whose enterprise exposure is a little lower than Seagate's, had a hard drive ASP of $58 during the Sep. quarter.

Seagate estimates industry hard drive shipments totaled 140M in the Sep. quarter (WDC had estimated 139M), and that it had a 40% share. That's unchanged Q/Q, but down from 42% a year ago. Average capacity/drive was 875GB, up from 863GB in FQ4 and 733GB a year earlier.

FQ1 results, slides

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