October 1, 2022

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Seagate Q4 earnings plummeted 42%: No one really buys mechanical hard drives?

2 min read

Seagate Q4 earnings plummeted 42%: No one really buys mechanical hard drives?



 

Seagate Q4 earnings plummeted 42%: No one really buys mechanical hard drives?

The market space of HDD mechanical hard drives is constantly being eroded by SSD hard drives.

In addition, the global economic situation is not good this year, and the demand for electronic products such as PCs and mobile phones has declined.

As a result, Seagate‘s Q4 financial report for fiscal year 2022 was less than expected, and its profits plummeted by 42%. 

 

According to Seagate’s financial report, revenue in the Q4 quarter was $2.63 billion, lower than analysts’ expectations of $2.8 billion.

Revenue in the same period last year was $3.01 billion, a year-on-year decrease of 12.6%, while profit was $276 million, compared with $482 million in the same period last year. , a year-on-year decrease of 42%.

 

Adjusted EPS of $1.59 missed analysts’ expectations of $1.91.

 

Seagate Q4 earnings plummeted 42%: No one really buys mechanical hard drives?

 

Seagate’s main product is HDD hard drives. Officials will not announce specific shipment data very early, but the shipment can be evaluated based on the data in the financial report.

The total capacity of hard drives shipped in the Q4 fiscal quarter was 154.6EB.

The average hard disk capacity is 7.8TB. It can be seen from the calculation that only 19.82 million hard disks were shipped in Q4, compared with 28.2 million in the same period last year, a decrease of nearly 10 million.

 

That may not be the worst-case scenario, however, as Seagate has announced capacity cuts in response to falling demand, meaning fewer shipments in the next quarter.

 



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