Seagate Technology Earnings: Surges Past Analyst Estimates
Seagate Technology (NASDAQ:STX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. Shares are up 0.16%.
Seagate Technology Earnings Cheat Sheet
Results: Net income decreased -7.1% to $523 million ($1.38 per diluted share) in the quarter versus a net gain of $563 million in the year-earlier quarter.
Revenue: Rose to $3.7 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Seagate Technology. reported adjusted net income of $1.38 per share. By that measure, the company beat the mean analyst estimate of $1.28. It beat the average revenue estimate of $3.58 billion.
Quoting Management: “Seagate is executing well in an environment where customer demand forecasting is challenging,” said Steve Luczo, Seagate’s chairman, president and chief executive officer. “Looking ahead, we will continue to manage our business conservatively to the demand environment, focus on profitability and effectively invest for market leadership in storage for mobility, cloud and open source…
…Creating value for shareholders remains a top priority, and in the first half of fiscal 2013, we returned over 95% of operating cash flows through share redemptions and dividends.”
Revenue decreased 14.26% from $3.73 billion in the previous quarter. Net income decreased 10.14% from $582 million 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 $1.65 to a profit $1.27. For the current year, the average estimate has moved down from a profit of $6.62 to a profit of $5.27 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)