Seagate to See Revenue Rebound Amid HDD Sales Recovery

Based on Visible Alpha consensus, Seagate Technology (NASDAQ: STX) is expected to see a rebound in revenue in its next earnings release — fiscal Q4 2024 — driven by a recovery in HDD (hard disk drive) sales. Analysts estimate a +16% year-over-year increase in Seagate’s total revenue for the fourth quarter, primarily driven by +21% year-over-year growth in HDD sales. Seagate, like other storage device manufacturers, faced a downturn in 2023 as major electronics companies, including computer and smartphone manufacturers, reduced orders due to weak demand. However, the rising demand for cloud computing, fueled by advancements in artificial intelligence, is expected to boost investments in data centers that use Seagate’s memory chips.

For the full fiscal year, Seagate’s 2024 revenues are anticipated to decline by 12% year over year, following a 37% decline last year. The data storage provider is also expected to post a net loss (GAAP) of $65 million in 2024, an improvement from the $529 million net loss recorded last year. 2025 revenues are projected to rise by +39% year over year, driven by a 42% increase in HDD revenue and 16% growth in enterprise data solutions and other revenue.

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