Seagate Q3 mixed as hard-disk drive sales decline

The company missed third quarter revenue targets.

Seagate reported mixed third quarter financial results on Tuesday as it saw revenue and earnings decline from the previous year. The hard-disk drive storage provider reported Q3 net income of $195 million, or 69 cents per share, on revenue of $2.31 billion. Non-GAAP earnings for the quarter were 83 cents a share. A year ago, Seagate reported Q3 revenue of $2.80 billion.

Wall Street was expecting Seagate to report non-GAAP earnings of 71 cents per a share on revenue of $2.32 billion. Shares of Seagate were down pre-market but rebounded in early trading.

Seagate said Q3 revenue for its hard-disk drive (HDD) portfolio was $2.12 billion, down from $2.59 billion the previous year. The bulk of HDD sales went to OEMs. Revenue from Seagate's enterprise systems, flash, and other category was $189 million.

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"Seagate executed very well in the third quarter while navigating near-term demand head-winds," said Seagate CEO Dave Mosley. "Our focus on operational efficiency and expense discipline drove better-than-expected EPS and free cash flow generation."

Looking ahead, analysts expect Seagate to report fourth quarter earnings of 79 cents per share on revenue of $2.32 billion. Seagate responded with revenue guidance of $2.32 billion and adjusted EPS of 83 cents.

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