Seagate Technology Holdings plc (STX) said it is lowering business outlook for the first quarter due to a worsening macro-economic backdrop. The company now expects first quarter revenue of $2.1 billion plus or minus $100 million, compared to the previous guidance range of $2.5 billion plus or minus $150 million.
Seagate Technology noted that it is further reducing production output, lowering expenses, and moderating fiscal 2023 capital investments. The combination of lower revenue, increased under-utilization charges and less favorable product mix in the September quarter will result in a sequential decline in margins, with non-GAAP EPS now expected to be meaningfully below the company's prior guidance of at least $1.20.
Shares of Seagate Technology Holdings are down 6% in pre-market trade on Wednesday.
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