Seagate Shares Rebound on Better-Than-Expected Sales
NEW YORK (TheStreet) -- Seagate(STX) shares were given a boost in extended trading Tuesday after the hard-drive maker reported better-than-expected preliminary second-quarter revenue.
The Cupertino, Calif.-based firm expects to report revenue of at least $3.6 billion in the three months through December, up from a previous forecast of about $3.5 billion, when it releases its full results later this month. Gross margins will be more than 27%, reflecting unit shipments of about 58 million, Seagate said. The company had previously predicted gross margins at the lower end of its long-term non-GAAP range of 27% to 32%.
Investors pushed up Seagate's shares 2.1% to $32.05 in extended trading. The company's stock closed down 0.3% during Tuesday's session.
Analysts surveyed by Thomson Reuters have predicted revenue of $3.53 billion and earnings of $1.23 a share.
Seagate paid $1.1 billion in share redemptions and dividend payments during the quarter, according to a statement released after market close. This included a one-time acceleration of the firm's December 2012 quarterly dividend payment.
The company's cash, cash equivalents, restricted cash and short-term investments totaled about $2 billion on Dec. 28, 2012.
Seagate will report its full fiscal second-quarter results Jan. 28.
-- Written by James Rogers in New York.
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