Seagate Technology (NYSE: STX) is seeing some pain after the storage device and disk drive maker said results were going to fall short of current Street estimates.
The company said income fell 70% to $160 million, or $0.32 EPS (was $0.44 non-GAAP), on a 5.6% gain in revenues to $2.9 billion. We had First Call estimates at $0.42 on $2.89 Billion in revenues. Shipments during the quarter grew 10% year over year to 43 million.
Seagate’s fiscal Q1 guidance was the scourge here with revenues expected to be $3.15 to $3.3 billion and non-GAAP EPS at $0.22 to $0.26. This is a huge disappointment to First Call’s estimates of $3.23 Billion and $0.58.
Shares closed up 1.3% at $17.30 in regular trading but shares are now down almost 8% at $15.92 in after-hours trading. With a prior range of $16.50 to $28.91, you can count that as a new 52-week low.
Its key competitor is Western Digital Corp. (NYSE: WDC), who is expected to report earnings on July 24. Western Digital shares closed up 0.3% at $33.88 in regular trading and its shares were down over 4% at $32.39 in after-hours in sympathy.
Jon C. Ogg
July 15, 2008
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
