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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 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 reports.

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

Going forward, Seagate 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.