Seagate Technology Stock Price Among Competitors: An Overview

Seagate Technology is evaluating its growth potential amidst industry competition. Analyzing the current market condition reveals both opportunities and challenges for investors. With a projected revenue of $2.1 billion, guidance remains mixed as demand meets supply constraints.

Date: 15-02-2025

AI Rating: 5

Earnings Per Share (EPS): Seagate expects non-GAAP earnings of $1.7 per share for the upcoming quarter, with a +/- 20 cents variance. The recent downward revision in analyst estimates indicates a bearish outlook for future EPS growth.

Revenue Growth: The third-quarter fiscal 2025 revenue guidance is set at $2.1 billion. This reflects a robust revenue expectation, but supply constraints may impact actual results, suggesting cautious optimism about revenue growth.

Profit Margins: Seagate reported a significant increase in non-GAAP gross margin to 35.5% from 23.6% year-over-year. This improvement is primarily attributed to effective price adjustments and a favorable product mix shift towards mass-capacity products.

Headwinds Consideration: Despite these growth drivers, challenges persist with supply chain constraints expected to impact $200 million in potential revenue. Furthermore, increased competitive threats from HDD and SSD manufacturers remain a concern.

Overall, Seagate demonstrates a mixed outlook with substantial growth potential from AI and mass-storage demand. However, ongoing macroeconomic issues and supply challenges warrant a cautious investor approach.

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