Seagate tops 1Q 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.

See ZDII for US tech investor news.

See techTrader for more technology investment news, plus quotes and research.

To have your say online click on the TalkBack button and go to the ZDNet News forum.

Let the editors know what you think in the Mailroom. And read what others have said.