Hey everyone. Here's a quick look at Seagate-a stock some of you hold (especially some celebs in Trading With The Stars) as discussed on CNBC-TV today. Anchor Erin Burnett talked with the president and CEO of Seagate--William Watkins--after the company released a "bad" earnings report. The company's net income was down a whopping 22.6% and EPS fell 4 cents below estimates.
FYI-Seagate Technology is the largest maker of computer disc drives--founded in 1979 and based in Scotts Valley, California. Its market cap is $11.67 billion. The 52 week high for the stock price was $28.51 and the 52 week low was $19.15 a share. Competitors include Western Digital, EMC Corp, Komag and Network Appliance.
Watkins told CNBC--that there's still good demand for his company's product--but just that pricing issued forced them to come up with the numbers they did. He did say he expected the situation to improve--as demand will continue to be strong--according to Watkins.
In a statement, Seagate said revenue for the fiscal third quarter ended March 30 would be about $2.8 billion, compared with prior forecasts of $2.9 billion to $3 billion. It said gross margins did not achieve the company's expectations.
Question is--as always--what will happen to the stock price--up-- or down even more??