Barclays analyst Eric Sterling, who has an 'Equal Weight' rating on the stock, also expects better things from Seagate. "With expectations for an improvement in enterprise demand in the 2H of CY14, we believe that Seagate can benefit from improved mix and stable pricing as we move throughout the year," he wrote, in a note. "Given the consistency of earnings and the stability of cash flow, we believe that shares of Seagate can continue to trade in-line with current levels and above long-term historical averages."
During his interview with TheStreet, O'Malley said that there's plenty of positive sentiment about the broader U.S. economy. "When I talk to a lot of economists, I think they feel that the back end of the year stays strong - there's a view that job creation in the U.S. is happening," he said.
Seagate increased its U.S. headcount during the quarter, according to O'Malley, ending the quarter with about 6,400 stateside employees, up from approximately 5,700 a year or two ago.
O'Malley, however, noted that some overseas markets are not as robust at the U.S. "In the BRIC countries, it's still slow," he said. "To me, China is a wildcard, it blows hot and cold."
>>Read More: Greenberg: Not Long Ago Oracle's Ellison Mocked 'the Cloud'
>>Read More: EMC Beats Estimate but Shares Slide on Weak Guidance
>>Read More: IBM Touts Open Servers, Teams With Google to Tap Big Data
--Written by James Rogers in New York.Follow @jamesjrogers >Contact by Email.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV