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Seagate (STX) Issues Q2 Beat on Top and Bottom Lines

January 31, 2012 5:11 PM EST
STX Hot Sheet
Revenue Growth %: +164,714.8%

Financial Fact:
Income (loss) from operations: 1.21B

Today's EPS Names:
TLB, TNP, MENT, More
Shares of Seagate Technology plc (NASDAQ: STX) are trading down very modestly following the release of second-quarter results Tuesday afternoon.

Revenue rose 17.5 percent year over year to $3.195 billion and was slightly above the Street’s consensus of $3.15 billion.

The cost of sales fell minimally from $2.19 billion over the same period last year to $2.185 billion. Marketing and administrative expenses increased 38 percent to $141 million while the cost of product development rose 21.6 percent to $259 million. Total operating expenses only increased 3 percent year over year to total $2.59 billion.

Gross margin for the quarter was 31.6 percent.

Net income totaled $558 million, up 275 percent year over year. Diluted earnings rose from $0.31 per share in the year-ago quarter to $1.28 per share and topped the Street’s consensus of $1.08 per share. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported net income of $581 million and diluted earnings per share of $1.32 for the quarter ended December 30, 2011. Analysts were looking for the company to report EPS of $1.07.

The company finished the quarter with $1.825 billion in cash and cash equivalents, substantially lower than the $2.677 billion in the beginning of July 2011.

The stock last traded at $21.16.


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