Is Seagate Turning Around in 2016?
Seagate Technology reported better-than-expected fiscal second-quarter before the markets opened Friday.
Seagate Technology PLC (NASDAQ: STX) reported its fiscal second-quarter before the markets opened Friday. The company said it had $0.82 in earnings per share (EPS) on $3.0 billion in revenue. That compared to consensus estimates from Thomson Reuters of $0.71 in EPS on revenue of $2.94 billion. In the same period of the previous year, Seagate posted EPS of $1.35 and $3.70 billion in revenue.
During this quarter, the company paid cash dividends of $188 million and repurchased roughly 2.9 million ordinary shares for $107 million.
The company did not issue guidance in this release, so as far as we are concerned this report is still incomplete.
On the books, cash, equivalents and short-term investments totaled approximately $1.3 billion at the end of the quarter, compared to 2.28 billion a year ago.
Steve Luczo, Seagate’s chairman and CEO, commented on earnings:
Our results this quarter reflect the achievement of many of our operational goals, including improved profitability in our product portfolio and effective cost controls. Seagate sits in a favorable position as a leading storage solutions provider and we continue to believe that the long-term prospects for storage growth are strong. We are confident we have the right strategy and portfolio to continue delivering market-leading value to customers and generating strong returns for our investors through financial discipline.
[nativounit]
So far in 2016, Seagate has underperformed the broad markets, with the stock down 27% to Thursday’s close. Over the past 52 weeks, the stock was down over 50%.
Shares of Seagate were last seen trading up more than 8% at $29.06, with a consensus analyst price target of $37.87 and a 52-week trading range of $26.25 to $63.39.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
