Seagate’s new Exos X (STX) solutions to boost data management

Seagate Technology Holdings plc STX has spear Exos X 2U12, 2U24 and 5U84 — the latest addition to its line of advanced storage products.

The Exos X series are petabyte-scale devices that combine and virtualize multiple hard drives and solid-state drives, which provide data storage service to traditional enterprise data centers and private clouds.

The new system uses an erasure coding method called ADAPT (Advanced Distributed Autonomic Protection Technology), which reduces data redundancy overhead and speeds recovery time with fast system rebuilds.

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The Exos X system combines ADAPT with Seagate’s Autonomous Drive Regeneration (ADR), which automatically monitors and rebuilds drives in place, reducing the need for manual swapping. As a result, it helps data centers reduce IT waste and administrative burden.

Apart from that, it also features the VelosCT controller, which operates at speeds of up to 725,000 IOPS (I/O per second) at 1ms latency, and sequential read and write speeds of up to at 12 GB/s and 10 GB/s, respectively, according to the company report.

Seagate is one of the largest suppliers of hard disk drives (HDDs) and SSDs. The company is well positioned to take advantage of the strong demand for high capacity storage solutions.

The latest edition of the Exos X system aims to meet the growing market demand for SSD and HDD storage. The growing demand for thinner laptops and tablets in recent years has created an ideal market for SSDs.

In April he collaborated with Phison Electronics Corp to advance the development and distribution of enterprise-class NVMe SSDs, with a focus on improving performance and efficiency. Seagate added that the new SSDs will lower the total cost of ownership for commercial enterprises by offering higher storage density, lower power consumption and improved performance.

However, the company’s performance is affected by inflationary pressures, shortages of components other than hard drives, and uncertainty in global economic conditions, particularly in traditional end markets.

The company recently slashed outlook for the current quarter due to the deteriorating macroeconomic environment, particularly in certain Asian markets. Seagate noted that the current cautious spending habits of customers, including global enterprises, OEMs and some domestic cloud customers, will likely affect demand for mass capacity solutions in the near term.

The company now expects revenue of $2.1 billion (+/- $100 million) compared to previous revenue guidance of $2.5 billion (+/- $150 million)

Currently, Seagate carries a Zacks Rank #5 (Strong Sell). The shares lost 24.9% compared to the Of the industry down 61.8% over the past year.

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Actions to consider

Some top-ranked stocks in the broader tech space are Cadence Design Systems CDNS, badger meter BMI and Arista Networks A NET. Badger Meter, Arista Networks, and Cadence Design Systems each sport a Zacks #1 (Strong Buy) rank. You can see the full list of today’s Zacks #1 Rank stocks here.

The Zacks consensus estimate for CDNS 2022 earnings is pegged at $4.11 per share, up 5.7% over the past 60 days. The long-term earnings growth rate is expected to be 17.7%.

Cadence’s earnings have exceeded the Zacks consensus estimate for the past four quarters, averaging 9.8%. Shares of CDNS have jumped 3.3% over the past year.

The Zacks consensus estimate for BMI’s earnings in 2022 is pegged at $2.30 per share, up 6% over the past 60 days.

Earnings at Badger Meter have exceeded the Zacks consensus estimate in three of the previous four quarters, averaging 12.6%. BMI shares have lost 7.6% of their value over the past year.

Zacks’ consensus estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, up 9.8% over the past 60 days. The long-term earnings growth rate is expected to be 18.6%.

Arista Network’s earnings have exceeded Zacks’ consensus estimate for the past four quarters, averaging 10.1%. ANET shares have risen 33.8% over the past year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ramon J. Espinoza