Seagate Q2 Net Beats Expectations; Dividend Raised

By Eric Volkman – Jan 28, 2013 at 7:35PM

NASDAQ: STX

Seagate Technology

In spite of a decline, the hard drive maker's bottom line betters estimates.

Seagate Technology (STX) today reported a drop in quarterly earnings. According to GAAP standards, Q2 2013's net fell to $492 million ($1.30 per diluted share), but that was higher than the average analyst expectation of $1.27. Revenue came in at $3.7 billion.

The same figures for Q2 2012 were $563 million ($1.28 diluted EPS) on the bottom line on $3.2 billion in revenue.

Much of the year-over-year decline in the bottom line was due to costs related to a pair of acquisitions the company made during the quarter. It booked a non-cash $37 million expense for the purchases.

The company also announced a partnership with data storage equipment start-up Virident Systems, under which Seagate will invest $40 million in the young company.

Fool contributor Eric Volkman and The Motley Fool have no position in Seagate Technology. We Fools don't 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.