Seagate Technology PLC (STX) fell 0.9% to close at $45.14 % in Tuesday's trading after the company beat on earnings and revenue but said it sees a more difficult geopolitical environment ahead.
The data storage multinational reported fiscal second-quarter net income of $384 million, or $1.34 per share, compared with $159 million, or 55 cents per share, in the year-ago quarter. Adjusted earnings per share were $1.41. Analysts were looking for earnings of $1.27 a share.
Second-quarter revenue fell 6.5% from the year-ago quarter to $2.72 billion. Analysts were expecting revenue of $2.71 billion according FactSet. Gross margins declined to 29.2% in the current quarter from 30.1% in the same period the prior year.
Seagate CEO Dave Mosley said in a statement that geopolitical conditions for operations have gotten more difficult.
"In the December quarter, we executed well against a more challenging demand environment and delivered solid financial results reflecting strong operational efficiency," said Mosley. "While there are market and geopolitical uncertainties impacting the storage industry, our belief in the long-term growth of data creation and storage demand remains unchanged."
The current consensus EPS estimate for the upcoming quarter is $1.04 a share on revenue $2.43 billion, and earnings of $5.07 a share on revenue of $10.77 billion for fiscal 2019, according to Zacks Investment Research.
Over the last year, Seagate Technology beat EPS consensus estimates four times. Since the start of 2019, Seagate shares rose more than 17% vs. the S&P 500's gain of 8%.