Seagate said that storage demand among cloud and hyperscale data center customers are improving, but the company's outlook for the first quarter was soft.
Like other storage vendors such as Western Digital and NetApp, Seagate is navigating an uncertain economic environment. Seagate CEO Dave Mosley said that the June quarter execution was solid given economic uncertainties such as trade wars.
As we enter our next fiscal year, global industry conditions have started to improve, particularly among cloud and hyperscale customers. Seagate is in a strong strategic position to address growing demand for mass storage.
Seagate said it is shipping its 16 terabyte drives and is on track to meet future demand.
In the fourth quarter, Seagate reported net income of $983 million, or $3.54 a share, on revenue of $2.37 billion. Those results included a tax benefit. Non-GAAP earnings were 86 cents a share.
Wall Street was looking for adjusted earnings of 84 cents a share on revenue of $2.33 billion.
For 2019, Seagate reported net income of $2.01 billion on revenue of $10.39 a share.
As for the outlook, Seagate said it is expecting revenue of $2.55 billion, give or take 5% with non-GAAP earnings of 90 cents a share, give or take 5%.
Analysts were projecting non-GAAP earnings of $1.11 a share on revenue of $2.53 billion.