Seagate Technology (NASDAQ: STX) has just reported earnings after the close, and the stock has gradually gone from a growth stock to a value stock. The maker of drives and storage devices posted $0.12 EPS and $3.03 billion in revenue, while First Call estimates were $0.22 EPS and $3.16 billion in revenue. The company said that it had an impact for items against earnings of roughly $0.14 against its EPS.
The company also issued guidance of $0.12 to $0.16 EPS after items willtake $0.07 off of EPS, and it sees $2.85 to $3.05 billion in revenues.First Call has estimates for the current quarter at $0.36 EPS and $3.25billion in revenues.
The company also noted that the current uncertainty in global economicconditions makes it difficult to predict product demand and othermatters, so it noted that actual results could differ materially fromcurrent expectations.
Shares closed down over 1% at $8.00 today at a new 52-week low closingprice. Its prior range was $8.06 to $28.91. Unfortunately things arelooking even worse as the shares are down another 6% at $7.50 inafter-hours trading.
Competitor Western Digital (NYSE: WDC) closed down 6% at $13.77 in regular tradingtoday and its shares are down 0.7% at $13.67 in after-hours trading.It is set to release earnings after the close of trading tomorrow.
Jon C. Ogg
October 22, 2008