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Seagate Technology (STX) 4Q Earnings, Revenue Lag Estimates; Shares Off

 July 30, 2012 04:38 PM
 

(By Balachander) Seagate Technology Plc (NASDAQ:STX) reported quarterly earnings and revenue that trailed market expectations, and shares of the maker of hard disk drives retreated 3.88 percent in extended trading. 

The Dublin-based company posted earnings per share of $2.41 on revenue of around $4.5 billion for the fourth quarter ended June 29. Wall Street analysts expected earnings per share of $2.51 on revenue of $4.56 billion. In the year-ago quarter, Seagate earned 28 cents a share on revenue of $2.9 billion. 

The company's results reflect the acquisition of Samsung HDD business late last year. Cost of revenue jumped 30 percent and operating expenses surged 28 percent.

Seagate shipped roughly 66 million disk drives versus 52 million reported in the same period of last year.

The company said its business was impacted by an isolated supplier quality issue, which decreased enterprise sales by around 1.5 million hard drives in the fourth quarter. 

The stock, which has been trading between $9.05 and $32.55 over the past year, closed Monday's regular trading at $30.43.


Rich
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