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Seagate Beats Estimates

Seagate posts a healthy profit for the quarter as disc drive shipments increase.

SAN FRANCISCO - Disk drive maker

Seagate

(STX) - Get Report

reported third-quarter profit that beat analysts' expectations but its guidance for the current quarter fell short of Street estimates.

Net income for the quarter rose nearly 62% to $344 million, or 65 cents a share, compared with $212 million, or 39 cents a share, a year ago.

Excluding charges, the company reported profit of 70 cents a share vs. 47 cents a share the year before. Revenue for the quarter grew 10% to $3.1 billion from $2.82 billion a year ago.

Analysts were expecting earnings of 69 cents a share on revenue of $3.25 million.

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Shares of Seagate were down 10 cents, or 0.5%, to $20.07 in after-hours trading.

The company reported disc drive shipments of approximately 43 million in the third quarter, up 8% from the previous year.

For the fourth quarter, Seagate said it expects to report revenue of $2.85 billion to $3 billion, and earnings of 37 cents to 41 cents a share, including charges.

Excluding approximately $21 million of amortization and other acquisition-related charges, EPS is expected to fall in the range of 41 cents to 45 cents a share, the company said.

Analysts polled by Thomson Financial are expecting earnings of 57 cents a share on revenue of $3.10 billion.

Seagate declared a quarterly dividend of 12 cents a share to be paid on or before May 16 to all common shareholders of record as of May 2.

During the third quarter ended Mar. 28, the company purchased 36 million of its shares at an average price of $21.79. Through April 14, Seagate has purchased an additional 9.1 million shares at an average cost of $21.36. The company has authorization to purchase approximately $2 billion of additional shares.