April 19, 2011 / 10:03 AM / in 7 years

UPDATE 2-Seagate Q3 profit lags on lower shipments

* Q1 adj EPS $0.25 vs est $0.27

* Q1 rev $2.7 bln vs est $2.66 bln (Adds details, analyst estimates, background)

April 19 (Reuters) - Seagate Technology Plc posted a third-quarter profit below market expectations on lower hard-drive shipments.

It also announced a deal to buy Samsung Electronics Co’s hard disk business for $1.4 billion in cash and stock, a month after rival Western Digital Corp bought Hitachi Ltd’s hard drive business.[ID:nL3E7FJ1GA]

Seagate earned 25 cents a share on an adjusted basis for the three-month period ended April 1.

Analysts, on average, were looking for 27 cents a share, according to Thomson Reuters I/B/E/S.

Seagate shipped 49 million drives during the quarter, compared with 50.3 million units in the year-ago period.

The company reported third-quarter revenue of $2.7 billion, marginally above $2.66 billion pegged by Wall Street analysts.

Seagate, which counts companies like Hewlett-Packard and Dell Inc among its customers, had last week reinstated its dividend. [ID:nL3E7F73QV] (Reporting by Himank Sharma in Bangalore; Editing by Joyjeet Das)

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