Seagate Technology STX +14.03% reported earnings after the bell that came in ahead of Wall Street expectations and also guided well higher for the current quarter, sending its stock higher by almost 14% in post-market-trading activity.

The company reported earnings of $1.38 per share on revenues of $2.89 billion versus Street consensus of $1.08 per share on revenues of $2.82 billion for the company's fiscal second quarter ended December 30.

For the current quarter ending in March (FQ3), Seagate is guiding revenues to $2.7 billion versus current sellsider estimates of $2.6 billion. In addition, Seagate management also stated that earnings for the current fiscal year should be "at least $4.50" per share, well above current expectations of $3.78 per share.

The company reported that gross margins increased by 600 basis points to 30.8% and I expect further improvement going forward as management progresses further in its restructuring/cost reduction plans.

Back in July of last year, Seagate had announced a major restructuring that would eliminate 6,500 jobs and just a couple of weeks ago announced that it was shuttering its Suzhou plant in China.

On the conference call to discuss results, CEO Steve Luczo said, "From a macro perspective, we remain cautiously optimistic about the current macroeconomic environment and IT spending trends."

I would hardly call raising earnings guidance for the full year by 19% cautiously optimistic. However, that is all well and good for shareholders going forward.

Seagate is still cheap (especially after the raised earnings guidance for the year) as I had said in my preview going into the earnings for Seagate Technologies during the trading day.

A couple of other companies that could be well worth a look given the strong earnings and guidance off Seagate Technology's earnings report include Broadcom BRCM +% and Micron, to name just a couple.

Words to the wise.

Shares of Seagate Technology ended the post market trading session at $41.75, up 11.6% in addition to the just under 3% the shares had gained during regular trading.

As of this writing, shares are up $8.70 per share to $46.21, slightly above my admittedly fair value of $45 per share.