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Seagate Technology ( STX ) stock plunged Thursday after the company released preliminary earnings late the previous day that were below its earlier guidance due to weak demand for its disk drives in servers and personal computers. Seagate stock crashed 20.1% to 27.11 in the stock market today , the lowest since late January. The news also hit Western Digital ( WDC ), which fell 6.65% to 41.82. Seagate and Western Digital are the two largest providers of disk drives. IBD’s Take: How healthy are shares of Seagate and Western Digital, and how do they stack up vs. rivals? Find out at IBD Stock Checkup Seagate expects to report revenue of about $2.6 billion, below previous guidance of $2.7 billion, for its fiscal third quarter. That would be a 21% decline year over year and the fifth straight quarterly decline. Seagate expects to report a non-GAAP gross profit margin of 23% vs. its previous guidance of 25.6%. Seagate attributed the shortfall to lower demand for disk drives in the business sector, as well as weaker demand for disk drives among China-based PC makers and the company’s decision not to aggressively participate in the low-capacity notebook market, among other reasons. Seagate will report its full earnings before the market open April 29. The company expects to report disk drive unit shipments of about 39 million, representing approximately 40% market share. Western Digital is scheduled to report its fiscal-third-quarter earnings April 28 after the market close. Scalper1 News
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