Late Tuesday hard drive manufacturer Seagate Technology plc (STX) reported that it expects its second quarter revenue to be higher than previously forecasted.
The Cupertino, California-based company expects revenue for the second quarter to be at least $3.6 billion, up from the previous outlook of $3.5 billion. Wall Street analysts are expecting STX to see $3.53 billion in revenue, according to Thomson Reuters.
These higher revenue estimates come in despite Seagate and its compeitors struggling with weak PC sales. Analysts were expecting that Seagate would ship a lower number of hard drives due to the diminishing PC demand and slow Windows 8 adaption.
Seagate shares were up $1.03, or +3.27%, during premarket trading on Wednesday. The stock is up +71.2% over the past year.
The Bottom Line
Shares of Seagate Technology (STX) have a 4.89% dividend yield, based on last night’s closing stock price of $31.39. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.
Seagate Technology plc (STX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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