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TheStreet Open House

Seagate Misses Earnings, Revenue Targets; Shares Fall

CUPERTINO, Calif. (TheStreet) -- Seagate (STX) missed Wall Street's forecast for its fourth-quarter results. The company raised its dividend.

The hard-drive specialist, which announced its preliminary results earlier this month, reported revenue of $4.48 billion, up from $2.86 billion in the prior year's quarter, but below analysts' estimate of $4.56 billion.

Excluding items, Seagate earned $2.41 a share, up from 28 cents a share in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of $2.51 a share.

Seagate's fourth-quarter gross margin was 33.1%, or 33.6% excluding items.

"As we announced previously, we were disappointed not to meet our revenue and margin plan for the fourth quarter as a result of the industry's faster recovery from the supply chain disruption and an isolated supplier issue that we experienced," said Steve Luczo, Seagate's CEO, in a statement released after the market close.

Nonetheless, the CEO cited Seagate's record revenue and unit shipments for the June quarter.

Seagate, which competes with Western Digital (WDC), said its board has approved a dividend of 32 cents a share, a 28% increase. The dividend will be payable on Aug. 29.

Investors, however, were unmoved by the dividend news, pushing Seagate's shares down 3.5% to $29.37 in extended trading.

--Written by James Rogers in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

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