Seagate Stock Falls Despite Q4 Earnings Beat

STX CFO David Morton is resigning

Seagate (NASDAQ:STX) stock was down on Monday despite the release of a good earnings report for its fiscal fourth quarter of 2018.

Seagate Stock Falls Despite Q4 Earnings Beat
Source: Shutterstock

The blow to STX stock today likely comes from an announcement completely separate from its fiscal fourth quarter earnings report. This is news that the company’s Executive Vice President and CFO, David Morton is resigning. The company notes that this resignation isn’t due to any “disagreement with the company’s accounting principles, practices or financial statement disclosures.”

This change will have Morton leaving behind the role of CFO at the company starting on Aug. 3, 2018. However, he will be staying on to assume a smooth transition to the next CFO. While the company searchers for its next CFO, Kathryn Scolnick, a senior finance executive at Seagate, will be serving as its interim CFO.

The news of Seagate’s CFO resigning is dragging down STX down today. That’s unfortunate because it released earnings per share of $1.62 for its fiscal fourth quarter of the year. This is up from its earnings per share of 65 cents from the same time last year. It also easily beat out Wall Street’s earnings per share estimate of $1.45 for the quarter.

Seagate also reported strong revenue of $2.84 billion for its fiscal fourth quarter of 2018. The technology company’s revenue reported in its fiscal fourth quarter of 2017 came in at $2.41 billion. Analysts were looking for STX to report revenue of $2.80 billion for the period.

STX stock was down 2% as of noon Monday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

©2020 InvestorPlace Media, LLC