Seagate Stock Slips Despite Better-Than-Forecast Results
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A Seagate FireCuda Gaming Hub
Courtesy of SeagateSeagate Technology shares are trading lower even though the maker of hard-disk drives reported better-than-projected quarterly results.
For its fiscal third quarter, ended March 31, the company posted revenue of $2.73 billion, up slightly from a year earlier, and ahead of the company’s estimate of $2.65 billion. Non-GAAP profits were $1.48 a share, ahead of guidance at $1.30 a share. Under generally accepted accounting principles, the company earned $1.39 a share.
“Seagate delivered another quarter of strong financial performance driven by ongoing operational execution and record sales of our high-capacity nearline drives,” CEO Dave Mosley said in a statement. “We grew revenue, expanded profitability and achieved non-GAAP EPS above our guided range.”
He said the results highlight both the strength of Seagate’s portfolio of hard-disk drives and the increasing demand for large-capacity storage. “These trends lend further support to our June outlook, including an anticipated return to solid year-over-year revenue growth in the June quarter and enhanced profitability,” Mosley said.
For the June quarter, Seagate (ticker: STX) is projecting revenue of $2.85 billion, give or take $150 million, in line with Street estimates. Non-GAAP profits are expected to be $1.60 a share, give or take 15 cents, slightly ahead of the $1.55 a share Wall Street had anticipated.
Seagate shares slipped 2.2%, to $82.24 in late trading. The stock is up more than 30% for the year to date.
Write to Eric J. Savitz at eric.savitz@barrons.com