Seagate (STX) Stock Spikes on Q4 Revenue Outlook
NEW YORK (TheStreet) -- Shares of Seagate Technology (STX) - Get Report are surging 19.3% to $28.74 on heavy trading volume Tuesday morning after the company announced better-than-expected preliminary revenue for the 2016 fiscal fourth quarter.
The Dublin-based data storage provider now sees revenue of about $2.65 billion, above analysts' estimates of $2.32 billion.
Seagate had previously projected revenue of approximately $2.3 billion.
The company is scheduled to report 2016 fiscal fourth quarter results before the opening bell on August 2.
Additionally, Seagate said it would reduce its global workforce by about 6,500 employees, or 14%, by the end of fiscal 2017.
The company "announced a more aggressive plan to reduce its workforce...which we view as a positive sign that management is taking the necessary steps to realign the company's cost structure to ongoing lower demand levels," Deutsche Bank wrote in an analyst note.
The firm has a "hold" rating and $25 price target on Seagate stock.
About 10.9 million of the company's shares changed hands so far today vs. its average 30-day volume of 5.9 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at.
But the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: STX