- Benchmark Analyst Mark Miller repeated a hold on Seagate Technology Holdings PLC STX. The company does not provide price targets for Hold rated stocks.
- The powertrain companies have recently lowered their forecasts for the September quarter significantly due to weaker trends, particularly in Asia, where inventory corrections are currently underway.
- Last week, citing similar concerns, memory chip makers Micron Technology, Inc mu led to a significant sequential decline and a possible loss for this quarter.
- Micron believes the weakness will extend into early next year.
- Seagate and Western Digital Corp WDC reported that they observed more cautious purchasing behavior from some cloud and enterprise customers.
- He sees this trend increasing. As such, he lowered his estimates for fiscal 23.
- Some improvement is likely in 2H23 and the high dividend yield convinced it to repeat a hold.
- He reduced his guidance for the December quarter from non-GAAP EPS of $1.22 on revenue of $2.4 billion to non-GAAP EPS of $1.02 on revenue of 2, $25 billion.
- Its FY23 guidance ranges from non-GAAP EPS of $5.36 on sales of $9.85 billion to non-GAAP EPS of $4.32 on sales of 9 $.15 billion.
- Price promotion: STX shares traded 3.10% lower at $55.65 on the last check Thursday.
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