The Needham guy seems to me to be the only one who is really getting it. But I suppose that just means that there is plenty of fuel on the sidelines to push the stock higher when they keep reporting results like these.
Needham analyst Richard Kugele cited Seagate's (STX:$19.635,0$1.875,010.56%) "significantly improved" position.
"Although bears continue to prophesize that every quarter is the peak for Seagate (STX:$19.635,0$1.875,010.56%) , facts are stubborn things," he wrote.
Seagate's (STX:$19.635,0$1.875,010.56%) quarter, he added, "was not the result of some unsustainable phenomenon, but rather a significantly improved tech position on a number of key platforms. Bolstered by industry-wide supply tightness and gradually recovering demand, we expect Seagate (STX:$19.635,0$1.875,010.56%) to continue to post record results in 2010."
Seagate shares jump on upbeat earnings
01/21 11:29 AM
SAN FRANCISCO (MarketWatch) -- Shares of Seagate Technology (STX:$19.635,0$1.875,010.56%) rose sharply Thursday, a day after the hard-drive maker swung to a quarterly profit and posted a better-than-expected outlook.
Seagate (STX:$19.635,0$1.875,010.56%) shares were up about 10%, surviving a broad-based sell-off.
Late Wednesday, Seagate (STX:$19.635,0$1.875,010.56%) reported earnings of $533 million, or $1.03 per share, compared with a net loss of $2.8 million, or $5.80 per share, in the same period last year. The results included amortization expenses of 2 cents per share.
Revenue jumped 33% to $3.03 billion, Seagate (STX:$19.635,0$1.875,010.56%) said.
Analysts were expecting Seagate (STX:$19.635,0$1.875,010.56%) to post earnings of 65 cents a share, on $2.85 billion in revenue, according to consensus forecasts from Thomson Reuters.
Seagate's (STX:$19.635,0$1.875,010.56%) results "ran right over rising investor expectations," J.P. Morgan analyst Mark Moskowitz said in a note.
Kaushik Roy of Wedbush said the "upside to revenues came from stronger than expected demand for hard disk drives and a favorable pricing environment."
"We believe that demand would have surpassed supply," he added.
Needham analyst Richard Kugele cited Seagate's (STX:$19.635,0$1.875,010.56%) "significantly improved" position.
"Although bears continue to prophesize that every quarter is the peak for Seagate (STX:$19.635,0$1.875,010.56%) , facts are stubborn things," he wrote.
Seagate's (STX:$19.635,0$1.875,010.56%) quarter, he added, "was not the result of some unsustainable phenomenon, but rather a significantly improved tech position on a number of key platforms. Bolstered by industry-wide supply tightness and gradually recovering demand, we expect Seagate (STX:$19.635,0$1.875,010.56%) to continue to post record results in 2010."
For its fiscal third quarter, Seagate (STX:$19.635,0$1.875,010.56%) said it expects earnings to be between 88 cents and 92 cents a share, and revenue to be between $2.9 billion and $3.1 billion.
Analysts have been looking for third-quarter earnings of 56 cents a share, on $2.7 billion in revenue, according to Thomson Reuters.
Shares of Seagate (STX:$19.635,0$1.875,010.56%) rose more than 8% to $19.30 in after-hours trading Wednesday, following its earnings announcement.
Scotts Valley, Calif.-based Seagate (STX:$19.635,0$1.875,010.56%) said operating expenses fell sharply in its second quarter, dropping to $2.4 billion from $4.7 billion in the same period a year earlier. |
