Back to top

Image: Bigstock

Seagate's (STX) New Exos X Solutions to Boost Data Management

Read MoreHide Full Article

Seagate Technology Holdings plc (STX - Free Report) has launched Exos X 2U12, 2U24 and 5U84 — the latest addition to its advanced storage product line.

Exos X series are petabyte-scale devices that combine and virtualize several hard drives and solid-state drives (SSDs), 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 up recovery time with fast system rebuilds.

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

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

Seagate is one of the largest providers of hard disk drives (HDDs) and SSDs. The company is well-poised to gain from the strong demand for mass capacity storage solutions.

The latest edition of the Exos X system aims to tap the growing demand for the SSD and HDD storage market. The increasing demand for thinner laptops and tablets over the past few years has created an ideal market for SSDs.

In April, it collaborated with Phison Electronics Corp to advance the development and distribution of enterprise-class NVMe SSD, with a focus on enhanced performance and efficiency. Seagate added that the new SSDs would reduce the cost of total cost ownership of business enterprises by providing higher storage density, lower power consumption and improved performance.

However, the company’s performance is being affected by inflationary pressures, non-HDD component shortages and uncertainty prevailing over global economic conditions, particularly at legacy end markets.

The company recently slashed the outlook for the current quarter owing to the deteriorating macroeconomic environment, especially in some Asian markets. Seagate noted that current cautious spending patterns by customers, including global Enterprise, OEMs and certain domestic cloud clients, will likely affect demand for mass capacity solutions in the near term.

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

At present, Seagate carries a Zacks Rank #5 (Strong Sell). Shares have lost 24.9% compared with the industry’s decline of 61.8% in the past year.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . Badger Meter, Arista Networks and Cadence Design Systems each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.

Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 3.3% in the past year.

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

Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 7.6% of their value in the past year.

The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.

Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 33.8% in the past year.

Published in