Why Has Seagate’s Stock Price Plummeted By 20% This Week?
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.
Revenues 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.
Have more questions about Seagate? See the links below:
- What’s Seagate’s Revenue & Earnings Breakup?
- What’s Seagate’s Fundamental Value Based On Expected 2015 Results?
- How Has Seagate’s Revenue Composition Changed Between 2012 And 2015?
- Seagate’s Revenue & EBITDA Growth in The Next 5 Years: Trefis Estimate
- How Will The Composition Of Seagate’s Unit Shipments Vary From 2015 Through 2019?
- Why We Revised Our Price Estimate For Seagate To $39
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- Seagate Technology Announces Preliminary Financial Information For Fiscal Third Quarter 2016, Seagate Press Release, April 2016 [↩]