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Seagate Technology (STX)

  • May. 29, 2012, 11:23 AM
    Seagate (STX -2.3%) and Western Digital (WDC -2.1%) sell off following a downgrade to Equal Weight from Barclays' Ben Reitzes, who sees soft PC demand hurting the companies' 2H results. Reitzes also claims notebook hard drive prices, boosted by capacity shortages, are falling faster than expected, and says his checks indicate hard drive production cuts and PC inventory tightening. Moreover, he expects Apple's rumored plans to sell a cheaper MacBook Air to hurt hard drive demand.
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  • May. 23, 2012, 11:03 AM
    Cash-rich Seagate (STX -2.2%) is acquiring French external hard drive/low-end storage vendor LaCie for $186M. Seagate declares the companies' offerings to be "highly complementary" (in spite of moderate overlap), and touts LaCie's ability to bolster its European and Japanese presence. Seagate might also be interested in the potential to boost LaCie's margins by having the company rely on Seagate's hard drives.
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  • May. 22, 2012, 10:08 AM
    Hard drive kingpins Seagate (STX -6.8%) and Western Digital (WDC -4.8%) trade lower following analyst commentary about high inventory levels. Controller chip suppliers LSI (LSI -6.7%) and Marvell (MRVL -2.3%) are falling in sympathy. (previous)
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  • May. 18, 2012, 2:04 PM
    Up yesterday after beating FQ1 estimates and delivering decent FQ2 guidance, as well as announcing a dividend and new buybacks, Marvell (MRVL -2.2%) is now trading lower. Judging by how hard drive controller customers Seagate (STX -4.3%) and Western Digital (WDC -5.5%) are also selling off, the Street may have wanted hard drive demand to drive more FQ2 upside. Nomura (Reduce) is worried about the margin impact of a mix shift towards mobile baseband chips. (transcript) (also)
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  • May. 9, 2012, 1:22 PM
    Brean Murray reiterates a Buy on Seagate (STX -0.9%) after meeting with CFO Pat O'Malley. The firm thinks Seagate's 2013 gross margin could be above the mid-20% level the Street is currently expecting, thanks partly to lower costs, and believes management's comments suggest there could be upside to June quarter margin and EPS estimates. Seagate recently fell due to rival Western Digital's disappointing FQ4 guidance.
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  • May. 3, 2012, 6:34 PM
    Microsoft (MSFT) has added Seagate (STX) chairman/CEO Stephen Luczo as a board member. In addition, Virtual Instruments CEO John Thompson is replacing Netflix (NFLX) chief Reed Hastings on the compensation committee. Maybe this is why.
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  • May. 1, 2012, 11:10 AM
    Hard drive equipment maker Intervac (IVAC +13.8%) soars after beating Q1 EPS estimates, and reporting its order backlog grew 26% Q/Q to $41.3M. Other HDD industry players appear to be getting a lift: WDC +3.1%. STX +3.7%. XRTX +2.2%. Needham (Buy) argues Intervac is nearing an "inflection point," with the industry due to reach max capacity by the end of 2012, and notes the company has been trading at just ~20% above book value.
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  • Apr. 27, 2012, 11:24 AM
    More on Western Digital/Seagate: BofA is downgrading WDC to Neutral, arguing management's comments suggest softer-than-expected demand, which is proof the hard drive industry "can't have it both ways for much longer – pricing/margins at high levels, and expected strong demand." On that count, it doesn't help that solid-state drive prices are diving thanks to competition and cheaper flash memory. Nonetheless, Needham is staying bullish on both WDC and STX.
  • Apr. 27, 2012, 11:07 AM
    Western Digital (WDC -11.9%) and Seagate (STX -6.8%) dive after the FQ4 guidance that followed WDC's stellar FQ3 report fails to impress, and the company says on its earnings call hard drive prices will fall Q/Q. Given the role expectations of continued pricing and margin strength (thanks to supply constraints) have played in this year's rally, that's not going over well. Also, WDC says near-term cost savings from the acquisition of Hitachi's hard drive business will be limited.
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  • Apr. 27, 2012, 9:00 AM
    Premarket gainers: EXPE +19%. AMZN +17%. JAZZ +15%. CRAY +12%. WCRX +12%. BPZ +6%. CBS +5%. AEM +5%. RTK +5%. ARNA +4%. GT +4%. CLWR +3%. SNY +3%. MT +3%. ARMH +3%.
    Losers: MDRX -42%. DECK -19%. WDC -11%. STX -7%. KOG -5%. SBUX -4%. FIO -4%.
  • Apr. 26, 2012, 7:08 PM
    Seagate (STX) has announced a new $2.5B stock buyback program, increasing its total authorization to $3.5B. That's good for repurchasing 25% of shares at current levels.  Many expected Seagate would announce a new buyback program given its huge cash balance and massive profits in recent quarters. Nonetheless, shares are down 5.7% AH due to rival Western Digitial's FQ4 guidance. (previous)
  • Apr. 26, 2012, 5:46 PM
    Western Digital (WDC) guides on its FQ3 earnings call for FQ4 revenue of $4.2B-$4.4B and EPS of $2.35-$2.55. That's above a consensus of $4.19B and $2.30, but isn't enough to satisfy investors given today's massive beat and a 70%+ rally from WDC's November lows. WDC -8.1% AH. Falling in sympathy: STX -4.6%. QTM -2.1%. XRTX -2.4%.
  • Apr. 25, 2012, 11:14 AM
    BofA's 30 favorite "Global Wave" stocks - high-beta stocks, often with low S&P quality rankings and cyclical earnings growth: ANR, ACI, ALV, CVC, CE, XEC, CLF, CRE, IPG, LVLT, LBTYA, LSI, MWV, MU, NFX, NIHD, NVDA, OI, BTU, PLD, SNDK, STX, SIRI, SPW, TRW, VMED, WLT, WDC, WLL, WYNN.
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  • Apr. 18, 2012, 11:58 AM
    Western Digital (WDC +5.9%) shares move higher in tandem with rival Seagate (STX +5.3%), whose FQ3 earnings surged for a second straight quarter as it enjoyed pent-up demand and higher prices for hard drives. But as margins fall as production levels return to normal following Thailand's floods, investors' easy money in these stocks may have passed.
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  • Apr. 18, 2012, 9:03 AM
    Premarket gainers: CHSI +32%. SXCI +9%. IVN +9%. URI +9%. HDY +4%. WYNN +4%. FSLR +3%. PCX +3%. WLT +3%. STX +3%.
    Losers: GNW -11%. CREE -7%. ALU -5%. STD -4%. TEF -4%. SYT -3%. BEE -3%. ASML -3%. CHK -3%. UBS -3%. SNE -3%. LOGI -3%. INTC -3%.
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  • Apr. 17, 2012, 7:37 PM
    In its conference call, Seagate Technology (STX) guides Q4 revenue  higher, now expecting to earn upwards of $5B, above Street estimates of $4.94B. Adjusted gross margin will exceed 34.5%. The company says the desktop drive market will remain constrained through the fall, while the enterprise and mission-critical market segments seem to have almost fully recovered. Shares +3.6% AH.
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Company Description
Seagate Technology PLC is a provider of electronic data storage solutions. Its products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs.
Sector: Technology
Country: United States