Seagate Quarterly Earnings Beat, Stock Falls On Tariff Concerns - Investor's Business Daily

Seagate Technology (STX) reported quarterly earnings before the market open Tuesday that beat estimates but the stock fell on cautious comments about tariffs.

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The disk-drive manufacturer reported revenue of $2.8 billion, beating analyst predictions for $2.7 billion and up 5% from the year-ago quarter. Seagate also said adjusted earnings were $1.46 per share, up 33% and beating estimates of $1.31 for its fiscal third quarter ended March 30.

The stock was down 9% near 52.50 during morning trading on the stock market today. Shares are up about 38% this year.

Seagate and Western Digital (WDC) are the two largest providers of disk drives. Western Digital also does a big business in computer memory chips. Western Digital reported quarterly earnings last week that beat on the top and bottom lines.

Tariff Concerns

During the conference call with analysts, Seagate's Chief Financial Officer David Morton, expressed caution on the topic of tariffs.

"In the area of tax and trade the U. S. and China have recently announced potential trade actions that could increase tariffs on some products imported into the U.S.," Morton said, as reported by MarketWatch. "Given the fluid nature of the issue it is too speculative to determine any impact or changes for Seagate's operations. However, we continue to monitor the situation."

Seagate said cash and cash equivalents totaled approximately $2.9 billion at the end of the quarter.

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