Seagate Technology plunges 12% on weak Q4 results, guidance, production cuts
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Seagate Technology (NASDAQ:STX) plunged 12% after the hard-disk drive maker posted fiscal fourth-quarter results that missed expectations and issued weak guidance, while announcing production cuts.
For the period ending July 1, Seagate (STX) generated $2.63B in revenue and earned an adjusted $1.59 per share, well below the $2.79B and $1.89 per share analysts were expecting.
Looking ahead to the fiscal first-quarter, Seagate (STX) said it expects to generate between $2.35B and $2.65B in revenue and earnings between $1.20 and $1.60 per share, compared to estimates of $3B and earnings of $2.21 per share.

Seagateâs chief executive officer Dave Mosley said the continuation of macro issues is continuing and the company is reducing production to maintain "supply discipline." The company is also managing expenses, Mosley added.


Seagate (STX) competitor Western Digital (WDC) declined more than 6% on back of the results, as did Micron Technology (MU).


In addition, Seagate's (STX) board of directors declared its quarterly dividend of 70 cents per share, payable on October 5 to shareholders of record on September 21.



Seagate (STX) is hosting a conference call at 5 p.m. EST to discuss the results.
On Wednesday, Bank of America cut Seagate's (STX) estimates for 2022, citing weakness in both the consumer and PC markets.