Seagate Warns Q4 Results To Fall Short Due To Weaker-than-expected Demand

Seagate Technology Plc warned Monday that fiscal fourth-quarter revenue and margins would be lower than expected, due to weaker-than-expected demand during the three-month period. The data storage company said it now expects revenue for the quarter to total about $2.9 billion, less than the $3.2 billion to $3.3 billion it was previously expecting. Non-GAAP gross margins are expected to come to about 27%, down from a prior forecast of 28.5%. The company expects to report unit shipments for the quarter of about 45 million and to maintain market share of about 40%. Cash and cash equivalents are expected to be about $2.5 billion at quarter end. Shares fell 2.5% in premarket trade and are down about 30% in the year so far, while the S&P 500 has gained 0.9%.