July 28 (Reuters) – Seagate Technology forecast quarterly revenue and profit above estimates on Tuesday, as the rapid buildout of AI infrastructure fuels robust demand for its high-capacity hard disk drives.
Shares of the Singapore-based company, which have more than doubled this year, rose over 8% in extended trading.
Here are some details:
• Seagate has leveraged its heat-assisted magnetic recording (HAMR) technology, which uses tiny lasers to help pack more data onto each disk, allowing it to boost hard-drive capacity and storage without building costly new manufacturing lines.
• The company expects first-quarter revenue of $4.1 billion, plus or minus $100 million, above analysts’ average estimate of $3.75 billion, according to data compiled by LSEG.
• Adjusted profit is expected to be $7.30 per share, plus or minus 20 cents. On average, analysts expect $5.80 per share.
• “As AI accelerates data generation and its value, we see durable long-term demand for mass capacity storage,” CEO Dave Mosley said.
• The results cap a strong year for Seagate, on the back of surging demand for its HDDs as large cloud companies build out the vast storage infrastructure required to support generative AI applications, allowing the company to raise prices.
• Fourth-quarter revenue rose 48.5% to $3.63 billion, beating estimates of $3.49 billion. Adjusted profit came in at $5.71 per share, compared with estimates of $5.09.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Sahal Muhammed)