NEW YORK (TheStreet) -- Shares of Seagate Technology (STX - Get Report) were declining in pre-market trading on Tuesday despite the Cupertino, CA-based data storage company pre-announcing 2017 first-quarter financial results that were above analysts' estimates.
Seagate expects revenue to be about $2.8 billion, higher than its prior estimate of $2.7 billion. Wall Street is looking for revenue of $2.74 billion.
The company's gross margin outlook is now 29%, up from its previous forecast of 27%.
Seagate said its outlook was boosted by better-than-expected demand for its enterprise hard disk drive products.
"This quarter we returned to our long-term targeted margin profitability and operating income ranges and generated significant cash flow from operations," said Seagate CEO Steve Luczo in a statement.
The company will post its full first-quarter earnings on Oct. 19 before the opening bell.
Separately, 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.
The team rates Seagate Technology as a Hold with a ratings score of C. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: STX