In a research note Monday, Loop Capital analyst Ananda Baruah writes that due to the accelerating demand for high-capacity “nearline” drives used by cloud players, both Seagate (ticker: STX) and Western Digital (WDC) “are well positioned” to beat both their own guidance and Street estimates for the quarter.
He thinks that industrywide sales of nearline drives in the June quarter could be up at 15% or more from the March quarter, with 35% growth possible for the 2022 calendar year.
Baruah notes that nearline drives now account for between 70% and 80% of overall revenue for the disk-drive industry.
As noted in this week’s Tech Trader column, the disk drive industry, once primarily a supplier of drives used in personal computers, now sells storage mostly for data center applications. Note that all three of the primary cloud computing companies—Amazon Web Services, Microsoft Azure, and Google Cloud—posted robust growth in the March quarter.
Seagate’s forecast for the June quarter calls for revenue of $2.8 billion and non-GAAP profits of $1.90 a share; the Street consensus estimates are $2.83 billion in revenue and profits of $1.96 a share. In reporting results for the March quarter, CEO Dave Mosely said the company had record sales of nearline drives in the period.
Western Digital’s guidance for the quarter calls for revenue of $4.5 billion to $4.7 billion, with non-GAAP profits of $1.60 to $1.90 a share; consensus estimates call for $4.46 billion and $1.72 a share.
In Monday trading, Seagate shares are up 3%, to $83.10, while Western Digital is up fractionally to $58.47.
Seagate and Western Digital Should Top Estimates On Cloud Demand, Analyst Says
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Nearline drives account for between 70% and 80% of overall revenue for the disk-drive industry.
Dreamstime
Thanks to strong demand from cloud computing providers, the June quarter should be a strong one for disk-drive producers
Seagate
and
Western Digital
.
In a research note Monday, Loop Capital analyst Ananda Baruah writes that due to the accelerating demand for high-capacity “nearline” drives used by cloud players, both Seagate (ticker: STX) and Western Digital (WDC) “are well positioned” to beat both their own guidance and Street estimates for the quarter.
He thinks that industrywide sales of nearline drives in the June quarter could be up at 15% or more from the March quarter, with 35% growth possible for the 2022 calendar year.
Baruah notes that nearline drives now account for between 70% and 80% of overall revenue for the disk-drive industry.
As noted in this week’s Tech Trader column, the disk drive industry, once primarily a supplier of drives used in personal computers, now sells storage mostly for data center applications. Note that all three of the primary cloud computing companies—Amazon Web Services, Microsoft Azure, and Google Cloud—posted robust growth in the March quarter.
Seagate’s forecast for the June quarter calls for revenue of $2.8 billion and non-GAAP profits of $1.90 a share; the Street consensus estimates are $2.83 billion in revenue and profits of $1.96 a share. In reporting results for the March quarter, CEO Dave Mosely said the company had record sales of nearline drives in the period.
Western Digital’s guidance for the quarter calls for revenue of $4.5 billion to $4.7 billion, with non-GAAP profits of $1.60 to $1.90 a share; consensus estimates call for $4.46 billion and $1.72 a share.
In Monday trading, Seagate shares are up 3%, to $83.10, while Western Digital is up fractionally to $58.47.
Write to Eric J. Savitz at [email protected]
Source: https://www.barrons.com/articles/analyst-seagate-western-digital-estimates-51652723565?siteid=yhoof2&yptr=yahoo