If you're going to refrain from making big investments to up your exposure to a new technology that's gradually eating away at your core market, it's important to at least have a very strong competitive position in that core market. #Seagate Technology PLC (STX) has failed to do that, and together with the steady cannibalization of large portions of that core market (hard drives) by a newer technology (SSDs), this has left the company in a much tougher spot than archrival #WesternDigital Corp. (WDC) . On Tuesday morning, Seagate reported June quarter (fiscal fourth quarter) revenue of $2.41 billion (down 9% annually) and adjusted EPS of $0.65, easily missing consensus analyst estimates of $2.56 billion and $0.98. And on its earnings call, the company guided for September quarter revenue of $2.5 billion to $2.6 billion, below a $2.71 billion consensus and implying a 9% annual decline at the midpoint. Seagate added that while it expects revenue to grow sequentially in the seasonally strong December quarter, it's "not on a trajectory" to hit prior calendar 2017 EPS guidance of $4.50.
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