Seagate Technology (Nasdaq: STX)

Seagate Technology stock had a bad day on the Nasdaq stock market on Tuesday after announcing its third-quarter earnings for fiscal 2018. 

Although the company’s earnings beat all estimates that analysts had earlier put forward, they did not seem to please investors and that sent the stock crumbling as soon as they were out.

The stock lost more than 10% during the morning session before gaining back a little to end the day at $54.23.

Seagate Technology Earnings & Outlook

The disk drive company finished above analysts’ revenue estimate of $2.7 billion after posting a revenue of $2.8 billion, which was up 5% from the same period last year. Adjusted earnings per share for the quarter was $1.46 up 33% and they too beat Wall Street estimates of $1.31. Last year, Seagate’s operating income for the same period was $266 million, but that changed this time round to $441 million.

Seagate CEO Comments

Dave Mosley, the company’s Chief Executive Officer made the following statement on the results: “Seagate achieved our second consecutive quarter of year-over-year revenue growth and exceeded our financial performance expectations for the March quarter, through solid execution and strong demand for our mass storage products. Looking ahead, the growing Data Age demand on storage, combined with consistent investment in our leading storage technology platforms and efficient operational capabilities, will continue to drive economic value for customers and returns for shareholders.”