Seagate's (STX) negative pre-announcement of lower than expected revenue surprised Goldman's Mark Delaney, because the firm's discussions in Asia with the supply chain and recent IDC data suggest a solid industry environment in Q3, he tells investors in a research note. Delaney believes that Seagate attributing the miss to weakness in nearline and a product portfolio transition suggests share loss in this segment to Western Digital (WDC). The analyst, who suggests buying Western Digital's stock on any weakness, keeps a Buy rating on its shares and a Neutral rating on Seagate.

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Sees Q4 revenue $1.7B-$2.0B, consensus $1.85B

Reports Q3 revenue $1.66B, consensus $1.68B. "Seagate's March quarter revenue grew 6% and non-GAAP EPS more than doubled over the December quarter as we benefit from improving cloud demand, our strong operating discipline and price execution. This combination sets the foundation for a return to target margin performance as the markets recover," said Dave Mosley, CEO. "This constructive demand backdrop is well-timed as we prepare to ramp our Mozaic products, anchored by industry-leading HAMR technology. HAMR-based products offer compelling economic value for our customers and position Seagate to drive further financial performance gains, as well as capitalize on favorable long-term demand for mass capacity storage."

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here