Seagate Tech Lacks Western Digital Earnings Oomph
ThinkstockSeagate Technology PLC (NASDAQ: STX) was supposed to beat earnings expectations. The disk-drive maker reported earnings that it missed expectations. The June quarter sales rose to $4.48 billion and earnings were $2.41 per share. The problem is that the consensus…
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Seagate Technology PLC (NASDAQ: STX) was supposed to beat earnings expectations. The disk-drive maker reported earnings that it missed expectations. The June quarter sales rose to $4.48 billion and earnings were $2.41 per share. The problem is that the consensus was $4.55 billion in sales and $2.50 in earnings per share. The report is a very big disappointment considering that Western Digital Corporation (NASDAQ: WDC) blew the doors off of its earnings and raised its guidance with earnings just last week.
One culprit may be that Apple Inc. (NASDAQ: AAPL) tends to offer more external drives from the WD brand in the stores, and then there is the pesky issue that 1 Terabyte costs less and less. You could almost joke that storage will one day be free.
Seagate shares closed up 1.4% at $40.43 on the day against a 52-week range of $9.05 to $32.55, but the stock is down 35 at $29.50 in the after-hours reaction. Shares of Western Digital Corporation (NASDAQ: WDC) closed up 0.6% at $40.17 against a 52-week range of $22.64 to $44.44, and its shares are down 1.1% at $39.72 in the after-hours trading session.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
