Seagate Technology (STX) Misses Q1 EPS by 28c, Cuts Guidance and Announces Restructuring Plan
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Seagate Technology (NASDAQ: STX) reported Q1 EPS of $0.48, $0.28 worse than the analyst estimate of $0.76. Revenue for the quarter came in at $2.04 billion versus the consensus estimate of $2.1 billion.
Seagate Technology sees Q2 2023 EPS of ($0.05)-$0.35, versus the consensus of $0.94. Seagate Technology sees Q2 2023 revenue of $1.6-2.0 billion, versus the consensus of $2.21 billion.
On October 24, 2022, the Company’s Board of Directors approved and committed to a restructuring plan (the “Plan”) to reduce its cost structure to better align the Company’s operational needs to current economic conditions while continuing to support the long-term business strategy. The Plan includes reducing its worldwide headcount by approximately 3,000 employees, or 8% of the global workforce, along with other cost saving measures.
The Plan, which the Company expects to be substantially completed by the end of the fiscal second quarter 2023, is expected to result in total pre-tax charges between $60 million and $70 million. The charges are expected to be primarily cash-based and consist of employee severance and other one-time termination benefits.
The Company expects to realize run-rate savings of approximately $110 million on an annualized basis starting in the fiscal third quarter 2023.
For earnings history and earnings-related data on Seagate Technology (STX) click here.
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