July 06, 2012 at 08:18 AM EDT
Seagate Slashes Revenue, Margin Forecasts on Demand, Supply Issues (STX)

Hard drive maker Seagate Technology (STX) late Thursday lowered its fiscal fourth quarter revenue and margin forecasts, sending its shares lower in aftermarket trading.

The Dublin, Ireland-based company said it now expects fiscal fourth quarter revenues of around $4.5 billion, down from its prior outlook for “at least” $5 billion. Its adjusted gross margin is now expected to be 33.6%, compared with its previous 34.5% estimate.

CEO Steve Luczo commented, “Based on the macroeconomic concerns indicated by a broad base of customers, we are approaching the September quarter conservatively and aligning our business for a relatively flat addressable market and modest improvements in our product mix.”

Seagate shares fell 82 cents, or -3.3%, in premarket trading Friday.

The Bottom Line
Seagate currently offers a 3.99% dividend yield, based on last night’s closing price of $25.08 and the company’s annualized dividend payout of $1 per share.

Seagate Technology (STX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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