This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Seagate Tech Guides Up

Updated from 4:48 p.m. EST

Sales to makers of consumer electronics devices continue to lift the fortunes of hard-drive maker Seagate Technology (STX - Get Report), which posted the first quarter of $3 billion in revenue in the history of the industry.

Unlike most of the technology companies that have reported earnings in the last few weeks, Seagate delivered solid guidance. However, the company's bottom line was punished by acquisition-related charges that pushed net income down by 51%.

Even so, investors liked the second-quarter report, and in after-hours trading shares were up $1.02, or 3.9%, to $27.20.

The Scotts Valley, Calif., company earned a profit of $140 million, or 23 cents a share, during the December quarter. Last year, Seagate posted a profit of $287 million, or 57 cents a share.

Revenue was $2.99 billion, including $200 million from legacy Maxtor products, up 30% from last year's $2.3 billion in sales.

Excluding $76 million in charges related to the Maxtor acquisition and $19 million for the early retirement of 8% notes, Seagate earned a profit of $236 million, or 39 cents a share. On that basis, the company easily surpassed Wall Street's expectations by 7 cents a share. Analysts were looking for sales of $2.92 billion.

Looking to the third, or March, quarter, Seagate expects to return a non-GAAP profit ranging from 56 cents a share to 60 cents a share on sales ranging from $2.9 billion to $3 billion. Analysts were projecting an EPS of 54 cents on sales of $2.9 billion.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
STX $19.37 -3.90%
AAPL $93.24 -1.01%
FB $117.26 -0.68%
GOOG $701.43 0.82%
TSLA $212.10 -4.70%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs