Seagate Technology Plc (NASDAQ: STX), a provider of electronic data storage products, after-market close on Monday reported better-than-expected second-quarter results. However, the company gave a disappointing outlook for the third quarter, sending shares down sharply in pre-market trading today.
At last check, STX shares were down 5.64% to $35.30 in pre-market trading today.
For the second quarter ended December 28th, 2012, STX reported revenue of approximately $3.7 billion. The company’s shipments for the quarter were 58 million units. STX’s second-quarter revenue beat Street estimates of $3.58 billion.
Seagate reported second-quarter net income of $492 million, or $1.30 per share, down from $563 million, or $1.28 per share reported for the same period in the previous year. Excluding one-time items, the company reported earnings of $1.38 per share, beating Street estimates of $1.33 per share.
While second-quarter results beat consensus forecast, investors have been disappointed with the company’s revenue outlook for the third quarter. The company expects third-quarter revenue to be between $3.25 billion and $3.45 billion, which is short of the consensus forecast of $3.48 billion.
Steve Luzco, Chairman, President and CEO of Seagate Technology, said that the company is executing well in an environment where customer demand forecasting is challenging. Luczo said that looking ahead, the company will continue to manage its business conservatively to the demand environment, focus on profitability and effectively invest for market leadership in storage for mobility, cloud and open source.
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