Why Has Seagate’s Stock Price Plummeted By 20% This Week?

April 15th, 2016 by Trefis Team
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Seagate Technology

Seagate (NASDAQ:STX) announced preliminary Q3 FY 2016 results earlier this week, revising its expected revenue and margin figures downward for the quarter. [1] As a result, the company’s stock tanked by over 20%. Below are Seagate’s preliminary Q3’16 results compared to the company’s prior guidance and our forecasts.

STX_Q316Revenues are expected to fall more than expected due to lower product shipments through the quarter. Seagate witnessed particularly low demand for mission-critical enterprise hard disk drives (HDD) in the March quarter. Moreover, a lower mix of enterprise HDDs through the quarter resulted in compressed margins.

STX_Q316_2Have more questions about Seagate? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to  Our Full Analysis For Seagate.
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Notes:
  1. Seagate Technology Announces Preliminary Financial Information For Fiscal Third Quarter 2016, Seagate Press Release, April 2016 [↩]