Seagate Q1 below analyst estimates
Turns enormous revenues, but not enormous enough
Hard drive manufacturer Seagate has recovered from the precipice of disaster, its fourth quarter results having managed to grow profits from a meagre $119 million to an impressive $1.01 billion year on year.
However, this does not appear to be enough for the analysts of Wall Street as Seagate’s CEO warned first quarter sales will not be as pleasing to shareholders as he initially thought.
Fourth quarter profit reached $4.48 billion, or a 57 percent increase, earning $2.41 per share. This was lower than $4.56 billion in revenues previously predicted by analysts.
TechEye reports that chief exec Steve Luczo blamed a stagnating PC landscape for what he said in a conference call will be weaker than expected first quarter results. The company thinks it will generate sales of roughly $4 billion, falling short of the expected $4.62 billion.
Luczo’s warning saw Seagate shares fall nine percent in trading, closing $30.43 late Monday on the Nasdaq, reports Reuters.
Global economic uncertainties mean that both the enterprise and consumers are holding off on buying hardware for the moment, although this is hoped to pick up later this year when Windows 8 rolls out. However, main rival Western Digital performed well by comparison.