Seagate gains after forecasting revenue, profit above estimates
STX•Shares rise after upbeat forecast
- Shares of Seagate Technology STX.O up ~2.9% to $768.75 premarket
- Co forecast quarterly revenue and profit above estimates on Tuesday, driven by strong demand for its high-capacity hard disk drives (HDD)
- Summit Insights Group believes STX’s gross margins have more room to expand in FY27, driven by a higher mix of HAMR-based HDD
- Co's HAMR (heat-assisted magnetic recording) technology enables more data to be packed onto hard drives and boosts storage capacity
- Summit also expects co to benefit from stable pricing and higher-capacity drives
- Co expects Q1 revenue of $4.1 bln and adjusted profit of $7.30/share, well above analyst estimates of $3.75 bln and $5.80/share, respectively
- Following the results, at least six brokerages raised PT on the stock - data compiled by LSEG
- 23 of 26 brokerages rate the stock "buy" or higher, 3 "hold"; their median PT is $1,000 - LSEG-compiled data
- As of previous close, stock up 171.3% YTD
