Seagate Technology Earnings: Here’s Why the Stock is Falling Now

Seagate Technology. (NASDAQ:STX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.51%.

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Seagate Technology. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 52.27% to $1.26 in the quarter versus EPS of $2.64 in the year-earlier quarter.

Revenue: Decreased 20.76% to $3.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Seagate Technology. reported adjusted EPS income of $1.26 per share. By that measure, the company beat the mean analyst estimate of $1.15. It beat the average revenue estimate of $3.38 billion.

Quoting Management: “Seagate’s operational results this quarter again reflect strong execution,” said Steve Luczo, Seagate’s chairman, president and chief executive officer. “The continued advancement of cloud, mobile and open source computing are trends that are shifting data volumes toward personal and corporate cloud environments, creating tremendous opportunities for Seagate’s leading storage technology portfolio. Looking ahead, our top priorities are focused on the efficiency of our operations, extending our leadership in storage technology innovation and returning value to shareholders.”

Key Stats (on next page)…

Revenue decreased 3.87% from $3.67 billion in the previous quarter. EPS decreased 8.7% from $1.38 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.2 to a profit $1.18. For the current year, the average estimate has moved down from a profit of $5.23 to a profit of $5.21 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]