Seagate Forecast Drowns Shares - TheStreet

Seagate Forecast Drowns Shares

The stock falls after the company said first-quarter profit won't meet current expectations.
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SAN FRANCISCO - Fourth-quarter profit plunged at Seagate (STX) - Get Report and the company said first-quarter net income would fall short of current Street estimates.

Shares of Seagate plunged 8% in recent after-hours trading to $15.90

Net income fell 70% to $160 million, or 32 cents a share, in the fourth quarter, from $541 million, or 96 cents a share, in the year-ago period.

Excluding special items, such as a $36 million restructuring charge, EPS was 44 cents, two cents ahead of analysts' estimates

Revenue at the Scotts Valley, Calif., disk-drive maker grew 5.6% to $2.9 billion from $2.7 billion for the same quarter of last year. Analysts were expecting a top line of $2.89 billion, according to Thomson Reuters.

Shipments during the quarter grew 10% year over year to 43 million.

For the first quarter, Seagate projected revenue of $3.15 billion to $3.3 billion and EPS, excluding special charges related to past acquisitions, of 22 cents to 26 cents. Analysts were expecting revenue of $3.23 billion and EPS, less charges, of 58 cents.

Drive maker

Western Digital

(WDC) - Get Report

is due to report fourth-quarter earnings July 24.