Sector: Information Technology | Focus: Technology Hardware, Storage & Peripherals
HQ: Dublin, Ireland
Financial Risks
Seagate faces risks from intense competition, potential customer reductions/cancellations, volatile distributor/retailer sales, inaccurate demand forecasting, seasonal declines, dependence on third-party technology/licensing, supply chain disruptions, component shortages, product defects, cyberattacks, and high debt levels. The company's ability to service debt and meet covenants is also a concern. Geopolitical uncertainty and natural disasters pose further risks.
Financial Upside
Seagate's revenue increased in the September 2024 quarter, driven by improved demand for nearline products and favorable pricing. The company expects continued growth in data demand, including potential from Generative AI. A gain from the termination of interest rate swaps and sales of System-on-Chip operations also contributed to positive results.
