Seagate reported a profit of $428 million, or $1.24 a share, down from $492 million, or $1.30 a share, in the same period one year earlier. Earnings per share, excluding items, came in at $1.32, compared to $1.38 a year earlier. Analysts polled by Thomson Reuters expected an EPS of $1.38. Revenue also dropped 3.8% to $3.53 billion. Seagate had estimated revenue in the range of $3.5 billion to $3.6 billion.
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"Seagate's results in the December quarter reflect discipline in managing the profitability of our business and strong operational execution. We continue to strategically invest in our product portfolio and enhance our vertically integrated manufacturing capabilities to effectively capitalize on the cloud, mobile and open source storage trends that are being fueled by data growth," said chairman and CEO Steve Luczo in the company's statement. "Our cash flow was very strong this quarter, and combined with the execution of our capital allocation strategy, we are on track to meet our goal of returning 70% of our operating cash flow to shareholders this fiscal year."
TheStreet Ratings team rates SEAGATE TECHNOLOGY PLC as a "buy" with a ratings score of A. TheStreet Ratings 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."