Seagate Technology PLC said better-than-expected demand for its high-capacity enterprise hard disk drives led the company to guide for higher revenue and margins than it previously forecast.

The hard drive maker released preliminary financial information for its first quarter, saying it expects to report revenue of $2.8 billion and adjusted gross margin of about 29%. The company had expected $2.7 billion in revenue and adjusted gross margin of at least 27%.

Analysts polled by Thomson Reuters had expected $2.74 billion in revenue.

The company also said that cost-cutting measures continued to progress as planned operating expenses are expected to increase from the previous quarter.

Seagate will report its full results next Wednesday.

Shares fell 0.8% in premarket trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

October 11, 2016 10:05 ET (14:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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