Why Seagate Stock Popped 17% Today

Shares of Seagate Technology (NASDAQ: STX) stock jumped as much is 17.1% in early trading Monday after the company reported fiscal Q1 2018 earnings that handily beat estimates. Analysts had projected that Seagate would earn $0.86 per share in Q1, but it reported pro forma earnings of $0.96 per share -- a dime above consensus. Seagate stock is still up 12.1% as of 12:30 p.m. EDT.

Seagate's cash profits plunged in Q1, but investors aren't giving Seagate a "hard" time over that. Image source: Getty Images.

At $2.6 billion for the quarter, Seagate sales were down 6% year over year. Operating expenses, though, slumped 8%. As a result, despite scoring lower revenue for the quarter, Seagate's operating profit actually increased 15%. On the bottom line, net profits were up 8% at $181 million. Per-share diluted profits -- not pro forma -- grew 12% year over year.

Source: Fool.com