Seagate tops 1Q estimates

Disk-drive and software specialist stands and delivers on estimates

Disk-drive and software developer Seagate Technology easily topped analysts' estimates in its first quarter Tuesday, raking in $62m, or 26 cents a share, on sales of $1.75bn.

First Call consensus expected it to earn 21 cents a share in the quarter.

Seagate shares closed off $1 to $62.94 ahead of the earnings report.

The $1.75bn in sales marks a four percent jump from the year-ago quarter when it earned $2m, or 1 cent a share, on sales of $1.68bn.

Based on generally accepted accounting principles, Seagate posted a profit of $75m, or 31 cents a share, in the quarter.

Last quarter, Seagate beat the Street when it raked in $52m, or 22 cents a share, on sales of $1.55bn.

Its shares rallied up to a 52-week high of $76 in March after falling to a low of $26.56 last October.

Four of the eight analysts following the stock rate it either a "buy" or "strong buy" while the other four rate it a "hold".

Analysts expect Seagate to earn $1.11 a share in the fiscal year.

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