Seagate Technology posts 4th-quarter profit that is short of expectations

Seagate posts 4Q profit short of expectations

SCOTTS VALLEY, Calif. — Hard disk-drive maker Seagate Technology posted a profit in its fiscal fourth quarter, reversing a loss, as revenue grew 13 percent. But the earnings fell short of expectations.

Net income in the three months to July 2 came to $379 million, or 76 cents per share.

Adjusted for restructuring charges and an income tax benefit, adjusted earnings came to 70 cents per share.

Revenue grew to $2.66 billion from $2.35 billion.

Analysts surveyed by Thomson Reuters were looking for earnings of 77 cents per share on revenue of $2.85 billion. The estimates typically exclude items.

In a statement, CEO Steve Luczo acknowledged missing the company’s earnings guidance.

Industry demand was at the low end of expectations primarily because of issues related to the debt crisis in Europe and slowing consumer spending in the U.S. and Europe, he said.

“The lower unit shipments and unfavorable pricing at some key capacity points impacted Seagate’s ability to deliver revenue and earnings for the quarter within our target range,” he said.

For the full year, net income was $1.61 billion, or $3.14 per share, reversing a loss of $3.13 billion, or $6.40 per share.

Shares were down 8 cents at $14.45 in after-hours trading, after closing up 26 cents, or 1.8 percent, at $14.53.