Tesla's Optimus Robot Everything From Tesla AI Day Bella Hadid's Spray-on Dress Hasbro's Indiana Jones Toy 'Hocus Pocus 2' Review AirPods Pro 2 Discount Meal Delivery Services Vitamins for Flu Season
Want CNET to notify you of price drops and the latest stories?
No, thank you
Accept

Seagate hurdles 3Q estimates, but sales, profits slip

Seagate Technology beat analysts' estimates in its third quarter Wednesday despite a decline in both sales and earnings from the year-ago quarter. This will likely mark the disk-drive maker's last quarter as a publicly traded company.

In the quarter, Seagate (NYSE: SEG) earned $46 million, or 20 cents a share, on sales of $1.57 billion.

Its shares closed off 2 to 49 3/4 ahead of the earnings report.

First Call consensus expected Seagate to rake in 15 cents a share in the quarter.

In the year-ago quarter, Seagate posted a profit of 49 cents a share on sales of $1.81 billion.

Last month, Seagate stunned Wall Street by announcing a complicated $20 billion deal that would take the company private while selling its one-third stake in Veritas Software Inc. (Nasdaq: VRTS) back to Veritas.

Including one-time items, Seagate earned $136 million, or 58 cents a share. Those figures include a restructuring charge of $49 million, a charge of $105 million for the write-off of in-process research and development in connection with the company's acquisition of XIOtech Corp., a gain on sale of a portion of its investment in SanDisk Corp. of $453 million, and charges related to its investment in Veritas Software Corp. of $78 million.

In the year-ago period, including one-time items, Seagate had net income of $82 million, or 34 cents a share.

Seagate shares moved up to a 52-week high of 76 in March after falling to a low of 25 1/8 in July.

Ten of the 13 analysts tracking the stock maintain either a "buy" or "strong buy" recommendation.