The head to this piece isn't accurate--Savitz doesn't explain the stock is falling AH despite pretty good results and even decent guidance all things considered. But never mind.
Seagate Earnings Topped Estimates. Why the Stock Is Falling. -- Barrons.com
DOW JONES & COMPANY, INC. 5:14 PM ET 4/22/2020
Symbol Last Price Change |
| STX | 50.74 | +1 (+2.01%) | | QUOTES AS OF 04:00:00 PM ET 04/22/2020 |
The disk-drive maker Seagate Technology(STX) provided fresh evidence of continued strong demand for personal computers and servers, despite the global Covid-19 pandemic, as the company reported better-than-expected earnings for its fiscal third quarter ended April 3. But with guidance right in line with Street estimates, the stock is selling off in after-hours trading.
For the quarter, Seagate(STX) reported revenue of $2.72 billion, up 17.5% from a year ago, and ahead of the Wall Street analyst consensus estimate at $2.61 billion. Non-GAAP profits were $1.38 a share, ahead of the Street at $1.30. Results were about in line with the company's guidance for the quarter of $2.7 billion in revenue and profits of $1.35 a share.
Seagate (STX) said it repurchased $195 million of its common stock in the quarter, and now has $1.6 billion in cash and equivalents.
For the June quarter, Seagate(STX) sees revenue of $2.6 billion, give or take 7%, with non-GAAP profits of $1.28 a share, give or take 10%. Street consensus had been $2.57 billion in revenue and non-GAAP profits of $1.29 a share.
"Seagate(STX) executed very well in the third quarter while navigating the unprecedented challenges brought on by the Covid-19 pandemic," Seagate(STX) CEO Dave Mosley said in a statement. "Our teams worked tirelessly to safeguard the health of their colleagues, support customer demand, and execute our product roadmap. In this challenging environment, we achieved strong financial performance, delivering revenue and non-GAAP EPS that were above our guidance midpoint and continuing to generate solid free cash flow."
Through today's regular season close, Seagate(STX) shares were down about 13% for the year to date.
In after-hours trading, the stock is down 5.4%, to $48.
Write to Eric J. Savitz at eric.savitz@barrons.com |
