This story has been updated with Seagate's third-quarter guidance and its latest share price.
NEW YORK (TheStreet) -- Seagate (STX) missed Wall Street's top and bottom-line estimates in its fiscal second-quarter results, released after market close on Monday, sending its shares slumping.
The hard drive maker posted revenue of $3.53 billion, down from $3.67 billion in the prior year's quarter. Wall Street was expecting sales of $3.56 billion.
Excluding items, Seagate earned $1.32 a share on net income of $455 million, down from $1.38 a share and net income of $523 million in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of $1.38 a share.
Investors were underwhelmed by the numbers, pushing Seagate's shares down 6.29% to $54.40 in extended trading.Seagate's gross margin was 28% and it generated approximately $856 million in operating cash flow during the quarter. "Our cash flow was very strong this quarter, and combined with the execution of our capital allocation strategy, we are on track to meet our goal of returning 70% of our operating cash flow to shareholders this fiscal year," said Seagate CEO Steve Luczo, in a statement.
For the third quarter, Seagate expects revenue of at least $3.4 billion. Analysts surveyed by Thomson Reuters had forecast sales of $3.46 billion. The hard drive maker also said that its gross margin will be relatively flat compared to the second quarter. Seagate missed Wall Street's estimates in its first-quarter results. --Written by James Rogers in New York Follow @jamesjrogers >Contact by Email.
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