StorageTek Clobbers Estimates

Profit grows by about 25%.

Author:: TSC Staff
Publish date:: Jan 25, 2005 5:55 PM EST

Fourth-quarter profit at StorageTek (STK) - Get Report grew by about 25%, beating analysts' per-share estimates by 16 cents.

The data storage provider said after the bell that net income rose to $89.3 million, or 83 cents a share, from $71.3 million, or 64 cents a share, a year earlier.

Revenue rose to $665.8 million from $655.1 million a year earlier.

The top- and bottom-line results in the latest quarter sailed past analysts' estimates of 67 cents a share and revenue of $621.9 million.

Storage services revenue was up 7% from a year earlier, while service margins increased to 42% for the quarter. Product gross margins expanded to 53%, and total gross margins strengthened to 49%

Shares of StorageTek closed Tuesday down 11 cents, or 0.4%, to $29.57.