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Data Storage Reports Offer Mixed Results For Sector

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Correction: The previous article implied Seagate missed analyst consensus earnings expectations. The firm beat consensus EPS estimates, reporting $0.55 diluted EPS versus $0.53 diluted EPS estimates.

Big players in the data storage space posted quarterly reports this week, painting a mixed picture of the sector's health.

EMC Corporation (NYSE: EMC) posted consolidated revenue of $7 billion against expectations of $7.12 billion. The company reported fourth-quarter GAAP EPS of $0.39. GAAP EPS for the previous quarter came in at $0.43.

"2015 brought geopolitical and other market-wide uncertainties, while secular technology trends continued to accelerate," chairman and CEO Joe Tucci said. "EMC anticipated and focused on capturing the massive growth opportunity these trends will avail."

Dave Goulden, EMC's head of information infrastructure, pointed to 3 percent storage revenue growth as a sign of strength against customers' changing IT needs, such as the development of a "hybrid cloud."

Seagate Technology PLC (NASDAQ: STX) reported results for the second quarter of 2016 Friday morning. The company posted $3 billion in revenue against expectations of $2.85 billion, and returned $1.4 billion to shareholders in dividends and redemptions.

Diluted EPS for the quarter was $0.55. Analysts were looking for $0.53.

Seagate shipped enough storage to contain about 10 billion HD movies in 2015.

Western Digital Corp (NASDAQ: WDC) saw falling revenue but put in a better-than-expected earnings performance.

SanDisk Corporation (NASDAQ: SNDK) reported fourth-quarter results, showing an 11 percent decline in revenue to $1.54 billion for the quarter. Earnings were $1.26 on a non-GAAP basis for the quarter. Both figures beat analyst expectations of $1.44 billion and $0.89, respectively.

All four companies' stocks were trending up Friday morning. The industry seems well equipped to capitalize on customers' shifting demands, but investors might worry about whether revenues will increase with storage capacity.

Posted-In: Earnings Long Ideas News Intraday Update Movers Trading Ideas


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