Seagate Misses Earnings, Revenue Targets; Shares Fall
CUPERTINO, Calif. (TheStreet) -- Seagate(:STX) missed Wall Street's forecast for its fourth-quarter results. The company raised its dividend.
The hard-drive specialist, which announced its preliminary results earlier this month, reported revenue of $4.48 billion, up from $2.86 billion in the prior year's quarter, but below analysts' estimate of $4.56 billion.
Excluding items, Seagate earned $2.41 a share, up from 28 cents a share in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of $2.51 a share.
Seagate's fourth-quarter gross margin was 33.1%, or 33.6% excluding items.
"As we announced previously, we were disappointed not to meet our revenue and margin plan for the fourth quarter as a result of the industry's faster recovery from the supply chain disruption and an isolated supplier issue that we experienced," said Steve Luczo, Seagate's CEO, in a statement released after the market close.
Nonetheless, the CEO cited Seagate's record revenue and unit shipments for the June quarter.
Seagate, which competes with Western Digital(:WDC), said its board has approved a dividend of 32 cents a share, a 28% increase. The dividend will be payable on Aug. 29.
Investors, however, were unmoved by the dividend news, pushing Seagate's shares down 3.5% to $29.37 in extended trading.
--Written by James Rogers in New York.
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