January 4, 2012 / 11:19 PM / 6 years ago

Seagate forecasts strong Q2, Q3; shares jump

(Reuters) - Seagate Technology Inc forecast stronger-than-expected second-quarter revenue and expects sequentially higher shipments in the third quarter, as the hard disk drive maker recovered from the supply chain disruptions caused by the Thailand floods.

Shares of the company rose 7 percent to $17.99 in extended trading. They closed at $16.82 on the Nasdaq on Wednesday.

The company, along with rival Western Digital, was hit hard by widespread flooding in Thailand in July that disrupted production at its manufacturing facilities.

Thailand produces around half of global hard drives by housing top-ranked Western Digital, Seagate, Toshiba Corp and Hitachi Global Storage Technologies.

Seagate, which will report its second-quarter results on January 31, expects revenue of $3.1 billion to $3.2 billion, above analysts’ average estimates of $2.81 billion, according to Thomson Reuters I/B/E/S.

The company said it shipped about 47 million disk drives in the second quarter, higher than its previous estimate of 43 million drives.

It also said it now expects unit shipments to increase in the third quarter as compared to the December quarter, with revenue of $4.2-$4.5 billion, excluding any integration costs.

Analysts on average were expecting third-quarter revenue of $3.7 billion.

Reporting by Siddharth Cavale in Bangalore; Editing by Don Sebastian

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