Seagate Technology (STX) stock was down on Thursday after it announced preliminary financial information for fiscal Q1 2016.
Seagate Technology announced that it’s expecting to see $2.9 billion in revenue for its first quarter of 2016. This puts the company’s revenue on the low end of its previously announced estimates, which were set between $2.9 billion and $3.1 billion.
If Seagate Technology does report revenue of $2.9 billion during its Q1 2016, the it will fall below analysts’ estimates for the company. Analysts are expecting the company to report revenue of $3.03 billion for Q1 2016.
Seagate Technology didn’t announce preliminary estimates for its earnings per share for the quarter. Wall Street estimates that it will report earnings per share of 85 cents for the quarter. However, it’s possible that STX will miss this estimate.
“While Seagate had strong operating cash flows and made significant progress in cost containment in the September quarter, we are disappointed we did not execute a product portfolio that fully addressed the demand in the nearline market,” Steve Luczo, Seagate Technology’s Chairman and CEO, said in a statement. “Looking ahead, we are confident that our nearline product portfolio will be fully competitive by our fiscal third quarter.”
STC shares were down 13% as of Thursday afternoon.
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