Seagate Lowers Quarterly Sales Forecast; Shares Fall
Seagate Technology said late Monday that quarterly sales are likely to fall below previous estimates due to falling prices and less-than-expected demand for one of its products.
Shares of the computer hard drive maker fell wider than 8% on Tuesday. The company also said gross margins would also fall short of expectations.
Scotts Valley, Calif.-based Seagate now expects third-quarter sales of about $2.8 billion, 5% below the midpoint of its previous range of $2.9 billion to $3 billion.
The analysts' consensus estimate called for revenue of $2.94 billion, on average, according to Thomson Financial.
The company said weaker-than-expected demand for 3.5-inch ATA hard drives, as well as pricing pressure on high-capacity versions of those products, contributed to the expected shortfall.
The company will announce third-quarter results on April 17.