(Reuters) – Seagate Technology forecast second-quarter profit above Wall Street estimates and beat quarterly results on Tuesday, owing to the significant increase in cloud demand from global customers for its memory chips.
As cloud service providers are building out infrastructure to support cloud computing workloads and new AI-related deployments, they are expanding their hardware stack, which is positively impacting hard disk drives makers such as Seagate.
Seagate forecast second-quarter adjusted profit of $1.85 per share, with a margin of 20 cents either way, compared with estimates of $1.73, according to data compiled by LSEG.
Hopes of a recovering economy and growing demand for AI-powered PCs amongst consumer and commercial buyers have also helped the data storage business.
The company expects revenue for the second quarter to be $2.30 billion, plus or minus $150 million, compared with estimates of $2.29 billion.
It reported revenue of $2.17 billion for the first quarter ended Sept.27, compared with analysts’ average estimate of $2.13 billion.
The data-storage firm posted adjusted earnings of $1.58 per share in the first quarter, above analysts’ expectations of $1.48 per share.
(Reporting by Priyanka.G in Bengaluru; editing by Alan Barona)
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