Seagate Technology's Stock Drops After Profit Only Matches Analyst Expectations

Shares of Seagate Technology slumped 3.3% in premarket trade Monday, after the disk drive maker's fiscal second-quarter profit matched Wall Street analyst expectations, but disappointed investors. For the quarter ended Jan. 2, net earnings rose to $933 million, or $2.78 a share, from $428 million, or $1.24 a share, in the year-earlier period. Excluding non-recurring items, earnings per share were $1.35, in line with the FactSet consensus analyst estimate. Meanwhile, Estimize.com, which surveys buy-side investors, academia and individual investors, as well as sell-side analysts, was expecting earnings of $1.39 a share. Revenue rose to $3.7 billion from last year's $3.53 billion, just shy of FactSet consensus estimates of $3.74 billion. The stock had gained 9.6% over the past three months through Friday, more than double the S&P 500's advance of 4.4%.