Seagate Misses Net Sales Estimates in First Quarter
Drive maker Seagate Technology was unable to spin its way higher despite continued demand for advanced memory solutions. First-quarter results released after the markets closed yesterday showed the company posted net sales of $3.49 billion, a 6.5% drop from the $3.73 billion in the year-ago quarter and below the $3.56 billion Capital IQ consensus estimate. Adjusted net income was down sharply to $473 million, or $1.29 per share, a 27% drop from first-quarter 2012's $594 million, or $1.45 per share, and below the CapIQ estimates of $1.30 per share.
The drive maker says it's being pressured by technology transitions and macroeconomic uncertainty that's causing it to operate in a conservative fashion even though demand for exabytes of storage continues to rise.
Seagate did not provide guidance, but did announce that its board of directors approved a 13% increase in the quarterly cash dividend, from $0.38 per share to $0.43 per share this quarter.
The article Seagate Misses Net Sales Estimates in First Quarter originally appeared on Fool.com.Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.