Seagate starts on backfoot despite better than expected quarter
Last updated: 09:42 29 Jan 2018 EST, First published: 04:42 29 Jan 2018 EST
Memory maker Seagate Technology PLC (NASDAQ:STX) stock was on the back foot despite better than expected quarterly results.
Seagate reported first quarter earnings of US$1.48 per share, which was ahead of Wall Street expectations of US$1.36.
Company delivered record levels of exabyte shipment
The technology company’s adjusted net income figure also beat expectations at US$431mln for the three months versus US$382.5mln.
Quarterly revenue had already been reported, earlier this month, and it was confirmed at US$2.9bn while gross margin was reported at 28%. The company added that it generated US$237mln of cash in the period, and returned around US$350mln to shareholders (via dividends and share buy-backs).
Dave Mosley, Seagate chief executive, told investors that the performance reflected “solid execution and market demand”.
"Seagate delivered record levels of exabyte shipments and generated sequential growth in revenue and profit,” Mosely added.
“As the demand for storage continues to benefit from the proliferation of data, Seagate is in a strong position to grow its businesses, improve profitability and continue with its shareholder–return objectives."
On Wall Street, Seagate stock was down 0.77% trading at US$54.50.
