Seagate Technology Earnings: Misses Profit Estimate, Stock Scorched

Seagate Technology (NASDAQ:STX) reported higher profit for the fourth quarter as revenue showed growth. Seagate Technology is a provider of hard disk drives. It designs, manufactures, markets and sells hard disk drives. The company produces a range of disk drive products addressing enterprise applications.

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Seagate Technology Earnings Cheat Sheet

Results: Net income for Seagate Technology rose to $1.01 billion ($2.37 per share) vs. $119 million (27 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 56.8% to $4.48 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Seagate Technology fell short of the mean analyst estimate of $2.51 per share. It beat the average revenue estimate of $2.69 billion.

Quoting Management: CEO and chairman Steve Luczo commented in prepared remarks, “As we announced previously, we were disappointed not to meet our revenue and margin plan for the fourth quarter as a result of the industry’s faster recovery from the supply chain disruption and an isolated supplier issue that we experienced. Nevertheless, we are pleased to have achieved record revenue and unit shipments for the June quarter, which enabled Seagate to continue to return significant value to shareholders through dividends and share repurchases.”

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the third quarter, it topped the mark by 55 cents, and in the second quarter, it was ahead by 23 cents.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the first quarter of the next fiscal year is $2.33 per share, a drop from $2.82. At $6.84 per share, the average estimate for the fiscal year has fallen from $7.20 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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