Seagate Shares Take Drubbing After Q3 Miss

Shares of Seagate Technology (STX) - Get Report plunged on Friday after both its latest quarterly results and its outlook fell short of expectations. The data storage manufacturer reported a more than 20 percent drop in revenue at $2.95 billion - just shy of forecasts and a per share non-GAAP profit of $0.22 a share for its fiscal third quarter versus the $0.37 a share that had been expected by analysts. Seagate blamed lower demand for its storage devices especially in China. Revenue for the current quarter will be around $2.6 billion with an adjusted gross margin of 23 percent which compares with earlier guidance of $2.7 billion and gross margins of 25.6 percent.