Seagate (STX) Tumbles After Q2 Earnings Fail to Impress

NEW YORK (TheStreet) -- With Apple (AAPLdue to report any minute, it would have been easy to overlook Seagate Technology (STX) which reported after the close Monday.

The data storage maker wasn't so lucky. Investors turned against the stock shortly after the release of weaker-than-expected second-quarter financials.

In extended trading, shares tumbled 6.5% to $54.30.

For its second quarter ended December, the company recorded net income of $1.32 a share, six cents short of expectations, according to analysts surveyed by Thomson Reuters. Revenue of $3.53 billion saw a 3.8% year-over-year decrease and missed consensus by around $30 million.

On a quarter-by-quarter basis, net earnings grew 2.3% and revenue edged 1.2% higher.

"Seagate's results in the December quarter reflect discipline in managing the profitability of our business and strong operational execution," said CEO Steve Luczo in a statement.

The board approved a quarterly cash dividend of 43 cents a share, payable to shareholders of record at close of business Feb. 10.

TheStreet Ratings team rates SEAGATE TECHNOLOGY PLC as a Buy with a ratings score of A. The team has this to say about their recommendation:

"We rate SEAGATE TECHNOLOGY PLC (STX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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