Seagate Technology PLC Beats the Street; Shares Rise 1.9%

Hard drive giant Seagate beat earnings estimates in the third quarter thanks to strong enterprise sales. Share prices jumped 1.9% after hours.

Anders Bylund
Anders Bylund
Apr 29, 2014 at 5:43PM
Technology and Telecom

Image source: Seagate.

Seagate Technology (NASDAQ:STX) just reported results for the third quarter of fiscal year 2014 and also published a slide deck with commentary for the evening's conference call with analysts. In after-market trading, Seagate shares rose 1.9% on the news.

The maker of hard drive storage products reported non-GAAP earnings of $1.34 per share, up from $1.26 per share in the year-ago period and ahead of analysts' $1.25 consensus estimate.

Revenue declined 3.4% year over year to $3.4 billion, in line with analyst projections.

The company shipped 1.5% higher unit volumes year over year, balanced by a 3.2% decline in average selling prices. Adjusted gross margins improved from 28% to 28.5%.

Sales increased slightly in the retail channel. Enterprise drives showed the strongest growth among Seagate's product lines with a 5.5% annual sales jump, while sales of laptop drives fell 3.5%.

"We are positioning the company to lead in the evolving storage ecosystem by leveraging and investing in our market-leading product portfolio to enable shifts in the storage landscape in hyperscale, performance and mobility," said Seagate CEO Steve Luczo in a prepared statement.