As previously reported, Susquehanna analyst Mehdi Hosseini downgraded Seagate to Negative from Neutral, stating that his recent checks point to cloud procurement entering a downturn, not just a period of "digestion." Such a downturn will hit Seagate "where it hurts the most," namely in the profitable and growing Nearline segment, the analyst tells investors. Additionally, his checks suggest a continued erosion in NAND average selling prices, which he view as likely to accelerate SSD cannibalization of Seagate's client HDD segment, Hosseini noted. He lowered his price target on Seagate shares to $32 from $53.

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Sees Q4 revenue $1.7B-$2.0B, consensus $1.85B

Reports Q3 revenue $1.66B, consensus $1.68B. "Seagate's March quarter revenue grew 6% and non-GAAP EPS more than doubled over the December quarter as we benefit from improving cloud demand, our strong operating discipline and price execution. This combination sets the foundation for a return to target margin performance as the markets recover," said Dave Mosley, CEO. "This constructive demand backdrop is well-timed as we prepare to ramp our Mozaic products, anchored by industry-leading HAMR technology. HAMR-based products offer compelling economic value for our customers and position Seagate to drive further financial performance gains, as well as capitalize on favorable long-term demand for mass capacity storage."