This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Seagate Shares Slide on Q1 Miss (Update 1)

This story has been updated with comments from Seagate CFO Pat O'Malley, the company's outlook and updated share price.

NEW YORK ( TheStreet) - Seagate (STX - Get Report) shares slid in extended trading, weighed down by the company's top and bottom-line miss in its first-quarter results.

The Cupertino, Calif.-based firm reported revenue of $3.5 billion, down from $3.7 billion in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for sales of $3.56 billion.

Excluding items, Seagate earned $1.29 a share on net income of $473 million, down from $1.45 a share on net income of $594 million in the same period last year, and just below analysts' forecast of $1.30 a share.

However, Seagate CFO Pat O'Malley told TheStreet that profits were lifted in last year's quarter thanks to the lingering effects of Thailand's 2011 floods. "That was the last of the quarters where the flood impacted," he said. "There was pricing leverage because there wasn't full supply out there."

On a non-GAAP basis, the company's gross margin was 28.5% during its most recent quarter, compared to 29% in the prior year's quarter.

For the second quarter, Seagate predicts revenue between $3.5 billion and $3.6 billion, slightly below Wall Street's forecast of $3.64 billion. The company also expects to report a relatively flat gross margin.

Seagate shares, which closed up 0.1% at $49.85 during Monday's session, tumbled 4.51% to $47.60 in extended trading.

Seagate, which generated $682 million in operating cash flow during the quarter, will increase its dividend from 38 cents a share to 43 cents a share. The dividend will be payable on Nov. 26, 2013 to shareholders of record as of the close of business on Nov. 12, 2013

"While the challenges of technology transitions and macro uncertainty are driving us to manage our business conservatively, we remain focused on the fact that the demand for exabytes of storage continues to increase," said Steve Luczo, Seagate's chairman and chief executive officer, in the company's press release

--Written by James Rogers in New York.

>Contact by Email.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
STX $52.03 -1.98%
AAPL $124.43 -1.54%
FB $82.22 -1.18%
GOOG $548.00 -0.73%
TSLA $188.77 -0.94%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs