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 Surges on Preliminary Earnings

NEW YORK ( TheStreet) - Shares of Seagate Technology (STX - Get Report) moved sharply higher after the company gave strong preliminary second-quarter results, and robust third quarter guidance.

During the fiscal second quarter of 2012, Seagate said it expects preliminary revenues to be between $3.1 billion and $3.2 billion, as it shipped approximately 47 million disk drives.
Seagate gave strong preliminary results after market close on Wednesday.

Wall Street analysts polled by Thomson Reuters expect revenue of $2.81 billion and 70 cents per share in earnings. Seagate said it expects gross margins of at least 30.5%, well above the 28.1% Wall Street analysts expect. The company ended the second quarter with more than $2.1 billion in cash and cash equivalents.

Seagate also gave third-quarter revenue guidance above analysts' estimates. Seagate said it expects third-quarter revenues between $4.2 billion and $4.5 billion, with gross margins of at least 33%. The average analyst estimate from Thomson Reuters is $3.77 billion and a gross margin of 29.4%.

"The better than expected results for the December quarter are attributed to the company's outstanding operational performance and overall strong execution," said Steve Luczo, Seagate CEO and chairman, in a press release.

Luczo said that, despite significant supply chain disruptions, the company was able to deliver strong quarterly results. The industry is currently experiencing a shortage of hard drives caused by the flooding in Thailand.

Shares are sharply higher in after-hours trading, up 6.4% to $17.89 on over 100,000 shares, according to

-- Written by Chris Ciaccia in New York

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

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 $49.09 0.14%
AAPL $111.95 0.31%
FB $95.20 1.00%
GOOG $652.98 0.98%
TSLA $221.13 2.60%


Chart of I:DJI
DOW 17,123.94 -7.92 -0.05%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,832.4650 -6.1780 -0.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs