Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Seagate (STX) dropped 10% this morning after the company reported earnings, but the stock has since recovered most of those losses.
So what: Revenue in the fiscal fourth quarter added up to $3.4 billion, which led to $1.20 per share in adjusted profits by the time you reach the bottom line. Investors were expecting just $1.18 per share in non-GAAP net income. Seagate's board also authorized a $2.5 billion share repurchase program.
Now what: Seagate's guidance left a little to be desired, though. The company expects next quarter's revenue to be in the range of $3.5 billion to $3.6 billion, which didn't suggest a lot of upside to Seagate's cloud business. Shares have rallied significantly year-to-date, so investors had high expectations heading into the results. As computing shifts to the cloud, Seagate will need to transition its storage business accordingly.
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