Seagate fiscal Q2 earnings soar despite hard drive shortage worries

Seagate fiscal Q2 earnings soar despite hard drive shortage worries

Summary: Seagate shipped over 47 million disk drives while managing to post solid earnings despite worries about the global hard drive shortage looming.

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Despite the hard drive shortage in Thailand, Seagate managed to pull ahead of Wall Street expectations.

Seagate reported a second fiscal quarter net income of $563 million, or $1.28 a share (statement). Non-GAAP earnings were $1.32 a share on a revenue of $3.2 billion.

Wall Street was expecting Seagate to report second fiscal quarter earnings of $1.06 a share on revenue of $3.14 billion.

Seagate also shipped 47 million disk drives during the last quarter.

In November, Seagate upped its sales outlook for the December quarter to 43 million units shipped with revenue of $2.8 billion. However, some experts believe that the hard drive shortage is going to have a wider effect upon manufacturers and partners in early 2012.

For the outlook, Seagate is predicting a revenue of $3.75 billion excluding Samsung. Wall Street is expecting revenue to reach $3.32 billion.

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Topics: Banking, E-Commerce, Enterprise Software

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3 comments
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  • RE: Seagate fiscal Q2 earnings soar despite hard drive shortage worries

    The hard drive shortage prompted the sale prices to go up.

    At least it's due to a natural disaster combined with putting all the manufacturing eggs in one conveniently location (rather than diversifying in a genuine global environment)... some economic issues are brought about by consciously contrived means...
    HypnoToad72
  • RE: Seagate fiscal Q2 earnings soar despite hard drive shortage worries

    I guess that is what happens when you make cheap drives and deny warranty claims. I have several Seagate drives that have failed over the past couple years that my organization bought because they were a few dollars cheaper per drive and most of them were denied under warranty claim for one BS reason or another. Thank Goodness I convinced them to go WD with their black or RE4 series as replacements which have been working great ever since.
    bobiroc
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