US Markets
U.S. stocks were down on Friday, pulling back from record highs. The Dow fell more than 260 points to 30,914, the S&P 500 index slid 0.57% to 3,831 and the Nasdaq Composite Index was down 0.35% to 13,484.
Gainers
• Danaher Corp (DHR, Financial) +2.2%
• Salesforce.Com Inc (CRM, Financial) +1.6%
• Pultegroup Inc (PHM, Financial) +1.3%
• Ralph Lauren Corp​ (RL, Financial) +1.3%
• ServiceNow Inc (NOW, Financial) +0.9%
Losers
• International Business Machines Corp (IBM, Financial) -10.4%
• Devon Energy Corp (DVN, Financial) -5.7%
• Halliburton Co (HAL, Financial) -4.8%
• Hewlett Packard Enterprise Co (HPE, Financial) -3.2%
• Hess Corp (HES, Financial) -2.5%
Global Markets
The main European stock markets traded in the red. The U.K.'s FTSE 100 retrated 0.35%, Germany's Dax dipped 0.18%, France's CAC 40 slid 0.62% and Spain's Ibex 35 lost 1.06%.
In Asia, Japan's Nikkei 225 fell 0.44%, India's BSE Sensex slid 1.50%, Hong Kong's Hang Seng lost 1.60% and China's Shanghai Composite was down 0.40%.
Seagate Technology releases earnings report
Shares of Seagate Technology (STX, Financial) fell more than 6.5% on Friday morning after the company announced financial results for its second quarter of fiscal 2021. It posted earnings per share of $1.29, beating analysts' estimates by 16 cents, on revenue of $2.62 billion, which declined 3.0% year-over-year and beat expectations by $60 million.
CEO Dave Mosley had the following to say:
"Seagate delivered strong, double-digit revenue, earnings and free cash flow growth in the December quarter supported by broad-based improvement across nearly every served market and geography, and we had solid customer demand for our mass capacity products."
In the quarter, the gross margin reached 26.5% versus 28.1% in the same quarter of the prior year. The operating margin was 13.3%, down 90 basis points.
Looking at cash generation, Seagate generated $473 million in cash flow from operations and $314 million in free cash. It also paid cash dividends of $167 million and repurchased 18 million ordinary shares for $1 billion.
Looking ahead to the third quarter of fiscal 2021, the company expects revenue of $2.65 billion, plus or minus $200 million, and Non-GAAP diluted earnings per share of $1.30, plus or minus 15 cents.
The stock lost more than 5% so far this year versus the S&P 500's gain of 2.6%.
At the end of December, Parnassus Endeavor Fund (Trades, Portfolio) boosted its investment in the stock by 2.5% to 1,600,000 shares.
Disclosure: The author holds no positions in any stocks mentioned.
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