Seagate Stock Surges on Earnings - TheStreet

Seagate Stock Surges on Earnings

Seagate Technology stock surges after the company reports better-than-expected second quarter results.
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Seagate Technology

(STX) - Get Report

stock has surged after the company reported better-than-expected second quarter results late Wednesday.

Seagate closed at $19.49 on Thursday, up almost 10% on the day.

The data-storage leader reported net income of $533 million or $1.03 per diluted share versus a net loss of $2.8 billion or $5.80 in the previous year.

"Our strong financial performance in the December quarter was the result of our ongoing progress in driving operational efficiencies, our leadership position in high capacity, high performance products, an improved product mix and the overall strength of demand for digital storage," Steve Luczo, Seagate's CEO said.

A survey from Thomson Reuters forecast earnings of 65 cents per share.

Seagate posted second quarter revenue of $3 billion, climbing 33% from the same quarter last year. The company shipped a record 49.9 million disk drive units in the second quarter.

Seagate's total operating expenses dropped in the second quarter to $2.4 billion from $4.7 billion.

The company expects earnings of 88 cents to 92 cents a share and revenue of $2.9 billion to $3.1 billion in the third quarter.

Other data storage tech stocks have been trading in mixed territory.

Western Digital

(WDC) - Get Report

has risen 2.2% to $45.20 and

Hutchinson Technology


has increased 4.7% to $10.20.



stock has fallen 2.1% to $17.40.

-- Reported by Andrea Tse in New York

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