Consumer Electronics
Seagate Shows HDD Market Fears Overstated With Raised Guidance (STX, WDC)
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The company shipped approximately 47 million disk drives and sees revenues at $3.1 to $3.2 billion and expects gross margin as a percent of revenue to be at least 30.5% before the impact of the Samsung HDD acquisition charges. Thomson Reuters has estimates of $2.81 billion for the quarter.
For the next quarter, Seagate sees revenue of $4.2 to $4.5 billion and sees gross margin as a percent of revenue of at least 33%. Thomson Reuters has estimates of $3.62 billion for the quarter.
Cash and cash equivalents at the end of the December quarter came to more than $2.1 billion that was “inclusive of substantial outflows of approximately $1.2 billion during the quarter for matured debt and cash consideration for the Samsung transaction.”
Seagate shares rose 2.4% today and shares are up another 7.5% at $18.09 against a 52-week range of $9.05 to $18.60. Western Digital Corporation (NYSE: WDC) closed up 1% at $31.30 today and the shares are indicated up around $32.20 in the after-hours session.
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