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Seagate shares tumble on weak fiscal 2Q results

Shares of Seagate Technology fall on weak fiscal 2nd-qtr results, but analysts optimistic

NEW YORK (AP) -- Seagate Technology shares tumbled Tuesday after the hard-drive maker reported a double-digit profit drop for its most recent quarter.

The company late Monday announced fiscal second-quarter earnings and revenue that fell short of Wall Street expectations. In afternoon trading Tuesday, Seagate shares fell $6.98, or 12 percent, to $51.07, after falling as low as $50.50 earlier in the day.

Despite the drop, some analysts remained optimistic about the company's prospects and encouraged investors to look at the lowered stock price as a buying opportunity.

Ananda Baruah of Brean Capital LLC backed her "Buy" rating for Seagate shares, calling the quarterly results "a mere distraction" and predicting that the company's profitability will continue to increase.

At the same time, Monika Garg of Pacific Crest Securities backed her "Outperform" rating, attributing the earnings miss to higher operating expenses. She said she expects the company to get a boost from increased demand for higher capacity enterprise and branded storage drives.