Seagate Earnings Jump on Cost Cuts, Storage Demand
October 19 2016 - 2:30PM
Dow Jones News
Seagate Technology PLC said its profit more than tripled in the
September quarter, boosted by the company's recent cost cuts and
increasing demand for its cloud-storage products.
Seagate, one of the biggest makers of disk drives, has suffered
because of weakening demand for personal computers that use its
storage products. In response, the company has cut jobs and costs,
among other actions.
Wednesday, Seagate pointed to better-than-expected demand for
its high-capacity hard-disk drives for cloud storage by
businesses.
Over all, for the company's fiscal first quarter, Seagate
reported a profit of $167 million, or 55 cents a share, up from $34
million, or 11 cents a share, a year earlier. Excluding certain
items, the company recorded earnings of 99 cents per share, better
than the average analyst estimate of 89 cents on FactSet.
Seagate's total operating expenses fell 9.3% to $2.58 billion in
the first quarter.
Revenue declined 4.4% to $2.8 billion year-over-year, and gross
margin rose to 28.6% from 23.6%, confirming what the company
pre-reported earlier this month.
Shares of Seagate fell 2.2% to $34.55 in morning trading in New
York. The stock has fallen about 10% over the past year.
(END) Dow Jones Newswires
October 19, 2016 15:15 ET (19:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Seagate Technology (NASDAQ:STX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Seagate Technology (NASDAQ:STX)
Historical Stock Chart
From Oct 2023 to Oct 2024