Shares of Seagate Technology plc ( STX ) reached a new
52-week high of $41.52 on Friday, May 3, 2013 following modest
third quarter 2013 results announced on May 1 and a stable industry
outlook provided during the earnings call.HUTCHINSON TECH (HTCH): Free Stock Analysis
ReportMICRON TECH (MU): Free Stock Analysis ReportSILICON GRAPHIC (SGI): Free Stock Analysis
ReportSEAGATE TECH (STX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment
The closing price of the computer storage device manufacturer on
May 3 was $41.23, representing a robust one-year return of about
33.0% and a year-to-date return of about 29.1%. Average volume of
shares traded over the last three months stands at approximately
Seagate delivered positive earnings surprises in the last two
quarters. This Zacks Rank #3 (Hold) company has a market cap of
$14.8 billion and a long-term expected earnings growth rate of
Modest 3Q for Seagate
Seagate reported adjusted earnings of $1.26 per share, surpassing
the Zacks Consensus Estimate by 35.0% and the year-ago quarter
earnings by 5.9%.
Revenues dropped 20.8% from the year-ago quarter mainly due to
lower pricing. But the company mentioned that pricing was better
than the prior quarter. Channel inventory remained stable during
Seagate is optimistic regarding strong demand for high-capacity
drives as well as favorable pricing. Management also believes that
growth in Exabytes shipments would be possible given data exchange
growth in mobile and the cloud.
Management also looks forward to explore the tablet market with
its new 5 millimeter drive.
Following the third quarter earnings release, the Zacks Consensus
Estimate for fiscal 2013 moved up to $5.20 from $5.19. Five
estimates moved up while only two estimates moved down for 2013 in
the past 7 days.
Seagate's growing exposure into cloud and mobile space is
encouraging. Though the PC market will continue to lag for the
coming quarters, we believe Seagate's cautious investments will
help it grow in the long term.
Other Stocks to Consider
Other stocks in the technology industry that are currently
performing well and have a good visibility include
Hutchinson Technology Inc. ( HTCH ), with a Zacks
Rank #1 (Strong Buy), and Micron Technology Inc. (
MU ) and
Silicon Graphics ( SGI ), with a Zacks
Rank #2 (Buy).