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Seagate records underwhelming quarter amid slump in enterprise storage spend

(Image credit: Image Credit: Ken Wolter / Shutterstock)

Data storage company Seagate (opens in new tab) has published its earnings for the first quarter of its fiscal year, revealing a failure to meet analysts’ expectations.

The company reported a 10 percent drop in revenue year-on-year, reaching $2.31 billion. Although it outperformed its own expectations, the company missed consensus for $2.36 billion, ZDNet (opens in new tab) reports.

It also reported earnings per share at 93 cents, outperforming analyst expectations by a small margin.

Going forward, Seagate (opens in new tab) expects revenue of between $2.35 billion and $2.75 billion for the second quarter, placing possible consensus at $2.47bn. Earnings per share is expected to fall between 95 cents and $1.25, just in range of the $1.11 estimate.

Chief Executive Dave Mosley praised the company’s “good execution” during a period of “continued macro disruptions” that impacted several of the company’s key end markets.

"These disruptions were most pronounced in the enterprise market as the anticipated slowdown in enterprise IP spending impacted sales of our enterprise Nearline and mission critical dress," he added.

Mosley also said he expects enterprise spending to liven up next year, but also added that cloud spending could, for the first time ever, surpass spending on on-premises solutions.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.