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