UPDATE 2-Seagate raises Q4 revenue outlook

* Seagate sees Q4 revenue at $2.2 bln to $2.3 bln

* Expects revenue improvement will continue next quarter

* Stock up 2.3 pct in after-hours trading (Adds analyst comment, background)

By David Lawsky

SAN FRANCISCO, June 24 (Reuters) - Seagate (STX.O) raised its fourth-quarter revenue forecast and predicted a stronger-than-expected recovery in global disk drive demand on Wednesday.

Shares in the maker of hard disk drives rose more than 2 percent. Analysts said that with demand for personal computers generally increasing, the market had been expecting the company to raise its forecast.

"This is not a surprise," said Ashok Kumar of Collins Stewart. "We are seeing a production ramp."

Seagate forecast revenue of $2.2 billion to $2.3 billion in the fourth quarter ending July 3, up from its view in April of $1.9 billion to $2.2 billion.

The average analyst forecast was for $2.1 billion, according to Reuters Estimates. Seagate said it had been helped by operational efficiencies, in addition to improved market conditions.

The company also projected that revenue would continue to grow in the September quarter, to a range of $2.35 billion to $2.5 billion.

Seagate -- which changed chief executives and cut staff in the face of some of the worst market conditions it had ever faced, aiming to save $130 million annually -- said the market had started expanding again.

Improving upon its April 21 outlook, Seagate said it expects demand for disk drives worldwide to hit 120 million units during this quarter, up from the 114 million units it had projected in April.

Seagate predicted demand would continue increasing in the September quarter, with the exception of enterprises. It said that demand should grow 6 to 8 percent in the period, compared with the June quarter, because of the back-to-school and holiday selling seasons.

Seagate shares rose 2.3 percent to $10.10 after their Nasdaq close of $9.87. (Reporting by David Lawsky; Editing Bernard Orr, Gary Hill)