Declining personal computer shipments are taking a toll on Seagate Technology (STX), which reported lower-than-expected quarterly results, sending STX stock down more than 10% in Tuesday morning trading.
STX stock sank after the hard drive manufacturer said it earned $428 million during its second fiscal quarter, down from $492 million in the year-ago quarter. Adjusted EPS came in at $1.32. That disappointed analysts, who had forecast adjusted earnings of $1.38 per share of STX stock, Reuters noted.
Quarterly revenue was $3.53 billion, down 4% from the same time last year. That also frustrated Wall Street, which was looking for revenue of $3.56 billion.
Seagate said it anticipated $3.4 billion in revenue for the current quarter. That, too, missed analysts, who have forecast third quarter revenue of $3.46 billion.
Last year, personal computer shipments sank about 10%, according to industry research firm Gartner, continuing a slide that has extended for years as consumers increasing move toward smartphones and tablets.
STX stock ended Monday trading at $58.05 per share. Prior to Tuesday, STX stock had risen more than 55% over the past twelve months.