On Jan. 18, Seagate Technology (NYSE:STX) released Q2 2006 earnings for the period ending Dec. 30, 2005.

  • Both sales and earnings per share easily surpassed Street estimates, lending further credence to the turnaround story under way at Seagate.
  • Still, inventory growth outpaced sales growth by 15%. That's not usually a good sign, but it could mean that the firm is gearing up for an expected uptick in orders. (Get further insights here.)
  • Why is Seagate doing so well? A stat from the earnings release may provide a clue: Total demand for storage eclipsed 35 million terabytes during 2005, a 60% increase from the year before. Wow.

(Figures in millions, except per-share data)

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Related Companies:

  • Hitachi (NYSE:HIT)
  • Maxtor (NYSE:MXO)
  • Sun Microsystems (NASDAQ:SUNW)
  • Western Digital (NYSE:WDC)

Related Foolishness:

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Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile . The Motley Fool has an ironclad disclosure policy .