--- description: The ride has gotten a bit bumpy for Seagate and WD as of late (though the road is rocky for a large portion of tech companies right now). Two weeks ago... title: Seagate & WD See More Woes With The Release Of 3Q Earnings image: https://www.storagereview.com/wp-content/uploads/2016/04/seagateWD-Logo.jpg --- [![Storage Review]()](https://storagereview.com/) --- [Facebook](https://www.facebook.com/@storagereview) [X (Twitter)](https://twitter.twitter.com/storagereview) [Instagram](https://www.instagram.com/storagereview/) [LinkedIn](https://www.linkedin.com/company/storagereview-com) [YouTube](https://www.youtube.com/user/storagereview?sub_confirmation=1) [Email](mailto:info@storagereview.com) [Spotify](https://open.spotify.com/show/1y6VnznABhHeOSMOmbDTz0) [Reddit](https://www.reddit.com/r/StorageReview/) [Discord](https://discord.gg/TwMHb4azdC) [RSS Feed](https://www.storagereview.com/rss.xml) [TikTok](https://www.tiktok.com/@storagereview) [Facebook](https://www.facebook.com/@storagereview) [X (Twitter)](https://twitter.com/storagereview) [Instagram](https://www.instagram.com/storagereview/) [LinkedIn](https://www.linkedin.com/company/storagereview-com) [YouTube](https://www.youtube.com/user/storagereview?sub_confirmation=1) [Email](mailto:info@storagereview.com) [Spotify](https://open.spotify.com/show/1y6VnznABhHeOSMOmbDTz0) [Reddit](https://www.reddit.com/r/StorageReview/) [Discord](https://discord.gg/TwMHb4azdC) [RSS Feed](https://www.storagereview.com/rss.xml) [TikTok](https://www.tiktok.com/@storagereview) [![StorageReview.com]()](https://www.storagereview.com) ≡ Menu - [Home](https://www.storagereview.com/) - [Storage Reviews](https://www.storagereview.com/review) - [End User Reviews](https://www.storagereview.com/consumer) - [Enterprise Reviews](https://www.storagereview.com/enterprise) - [Ubiquiti Reviews](https://www.storagereview.com/best/ubiquiti-reviews) - [SR Merch](https://store.storagereview.com) - [Leaderboards](https://www.storagereview.com/best) - [Best Storage Arrays](https://www.storagereview.com/best/storage-arrays) - [Best Enterprise SSDs](https://www.storagereview.com/best/enterprise-ssds) - [Best Servers](https://www.storagereview.com/best/servers) - [Best Enterprise GPUs](https://www.storagereview.com/best/enterprise-gpus) - [Best Desktops for Local AI](https://www.storagereview.com/best/desktops-local-ai) - [Best Laptops for Local AI](https://www.storagereview.com/best/laptops-local-ai) - [Best Local LLM Tools](https://www.storagereview.com/best/local-llm-tools) - [Agentic AI Hardware](https://www.storagereview.com/best/agentic-ai-hardware) - [Best SSDs & Hard Drives](https://www.storagereview.com/best_drives) - [Best Portable SSDs](https://www.storagereview.com/best/portable-ssds) - [Best Business Laptops](https://www.storagereview.com/best/business-laptops) - [Best Mobile Workstations](https://www.storagereview.com/best/mobile-workstations) - [Best Desktop Workstations](https://www.storagereview.com/best/desktop-workstations) - [Best Mini PCs](https://www.storagereview.com/best/mini-pcs) - [Best Laptop Battery Life](https://www.storagereview.com/best/laptop-battery-life) - [Storage Reference Guide](https://www.storagereview.com/storage-reference-guide) - [About SR](https://www.storagereview.com/about-storagereview) - [StorageReview.com Sweepstakes Rules and Regulations](https://www.storagereview.com/storagereview-com-sweepstakes-rules-and-regulations) Search [Home](https://www.storagereview.com/) » [News](https://www.storagereview.com/news) » Seagate & WD See More Woes With The Release Of 3Q Earnings # Seagate & WD See More Woes With The Release Of 3Q Earnings by Adam Armstrong on April 29, 2016 The ride has gotten a bit bumpy for Seagate and WD as of late (though the road is rocky for a large portion of tech companies right now). Two weeks ago [Seagate adjusted its earnings outlook](https://www.storagereview.com/seagate_adjusts_earnings_outlook_takes_a_beating) trying to soften the blow of today. This lead us to speculate if [Seagate’s lack of a robust flash portfolio](https://www.storagereview.com/is_seagate_at_risk_when_it_comes_to_flash) may end up hurting them as they move forward in a world where flash is ascending the throne. WD also had a [less than stellar earnings last quarter](https://www.storagereview.com/wdc_posts_2q_earnings_seeing_revenue_sales_down). Both companies have released their third quarter earnings to more bad news. ![]() *Image courtesy Yahoo Finance* Seagate is reporting just under $2.6 billion in revenue this quarter, down from $3.3 billion a year ago. This is also lower than last quarter’s revenue that was just under $3 billion. Seagate’s gross margin this quarter was 20.2%, down from 24.8% from last quarter. Though they reported a net income of $165 million last quarter, now they are reporting a net loss of $21 million and diluted loss per share of $0.07. Seagate’s Non-GAAP looked a bit better with a gross margin of 22.7%, a net income of $66 million, and diluted earnings per share of $0.22. In this quarter Seagate also generated approximately $205 million in operating cash flow and paid cash dividends of $188 million with 298 million shares of ordinary stocks. And of course this news caused their stock to tank nearly 20% throughout the day. Looking at WD, they reported a revenue of just over $2.8 billion this quarter, down form $3.55 billion from last year and down from $3.3 billion from last quarter. WD reported a gross margin of 26.7% down slightly from 27.3% last quarter. Net income was $74 million down significantly from last quarter’s $251 million. Again Non-GAAP was better with a gross margin of 28.1% and a net income of $283 million. WD’s stock sunk as well but not to the extent of Seagate’s. WD’s acquisition of SanDisk is still scheduled to go through later this year. Both companies point to the changing market as the blame for the poor earnings. The Demand for HDDs is going down and the PC market is losing ground to the mobile market. It will be interesting to see how the companies respond to the changing market going forward. WD will be better positioned to compete in the flash arena with HGST and the mobile storage with SanDisk. Seagate is demonstrating some [interesting advancements in flash](https://www.storagereview.com/seagate_demonstrates_world_s_fastest_ssd) as well.  [Seagate Investor Relations](http://www.seagate.com/investors/) [WDC Investor Relations](http://investor.wdc.com) [Discuss this story](http://forums.storagereview.com/index.php/topic/39168-seagate-wd-sees-more-woes-with-the-release-of-3q-earnings/) [Sign up for the StorageReview newsletter](https://www.storagereview.com/storage_newsletter) **Engage with StorageReview** [Newsletter](https://www.storagereview.com/storage_newsletter) |  [YouTube](https://www.youtube.com/user/StorageReview "Opens in a new window") | Podcast  [iTunes](https://podcasts.apple.com/gb/podcast/storagereview-com-storage-reviews/id1060681115 "Opens in a new window")/ [Spotify](https://open.spotify.com/show/1y6VnznABhHeOSMOmbDTz0 "Opens in a new window") |  [Instagram](https://www.instagram.com/storagereview/ "Opens in a new window") |  [Twitter](https://twitter.com/storagereview "Opens in a new window") |  [TikTok](https://www.tiktok.com/@storagereview? "Opens in a new window") |  [RSS Feed](https://www.storagereview.com/rss.xml) ![]() ### Adam Armstrong Adam is the chief news editor for StorageReview.com, managing our internal and freelance content teams. 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