Seagate stock was trading slightly lower late Tuesday, after the hard-drive maker reported March-quarter results. The company's earnings beat expectations, but sales came in slightly lower.
Seagate Technology said that it earned an adjusted 33 cents per share on sales of $1.66 billion for its fiscal third quarter ending with March. On average, analysts projected the Fremont, Calif.-based company would post adjusted earnings of 29 cents per share and sales of $1.68 billion, according to FactSet.
For the same period a year earlier, Seagate posted a loss of 28 cents per share on an adjusted basis, with $1.86 billion in sales.
Perhaps tempering the sales miss, Seagate officials guided for a return to year-over-year quarterly revenue growth after a two-year slump. Seagate projected sales of $1.85 billion, at the midpoint of its range, for its fiscal fourth quarter ending with June. That would mark a 15% increase from the same period a year earlier.
The company's sales projection is roughly in line with what analysts were forecasting ahead of the report, according to FactSet.
Seagate is benefiting from "improving cloud demand, our strong operating discipline and price execution," Chief Executive Dave Mosley said in a news release. "This combination sets the foundation for a return to target margin performance as the markets recover."
Separately, Seagate said in a regulatory filing that it has agreed to sell certain intellectual property and equipment assets to a subsidiary of Broadcom for $600 million.
On the stock market today, Seagate stock slipped a fraction to 85.80 in after-hours action. Shares have bounced around in late action.
Seagate Stock: Technical Ratings
Founded in 1979, Seagate is the world's largest manufacturers of hard disk drives.
Prior to earnings, Seagate stock gained 1.6% in Tuesday trading. Further, shares have gained 5% so far this year and 51% in the past 12 months.
Coming into the report, Seagate stock had an IBD Composite Rating of 73 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Further, Seagate's IBD Relative Strength Rating was 88 out of 99.
Meanwhile, Seagate shares had an Accumulation/Distribution Rating of C+, which indicates slightly more institutional buying than selling of shares.
