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 (NASDAQ: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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Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.