Seagate cuts June quarter outlook

Storage giant Seagate delivered solid fiscal third quarter results, but cut its outlook for the June quarter.

Seagate (all resources, statement) reported earnings of $344 million, or 65 cents a share, on revenue of $3.1 billion. Excluding charges, Seagate reported earnings of 70 cents a share, a penny better than estimates. Seagate shipped 43 million disk drives in the quarter. So far so good right?

Seagate's outlook for its fourth quarter was light across the board. The company projected earnings per share between 37 cents and 41 cents on revenue of $2.85 billion to $3 billion. Excluding charges, Seagate is projecting June quarter earnings to be 41 cents a share to 45 cents a share. According to Thomson Financial, Seagate is expected to report fiscal fourth quarter earnings of 57 cents a share on revenue of $3.1 billion, according to Thomson Financial.

CEO Bill Watkins said he was pleased with the company's operational and financial performance in the third quarter, but noted that the notebook and retail markets were "two areas where the company recently has not performed to expectation."