Seagate Boosts Q2 Revenue Expectation Above Previous Outlook (STX)
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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