Seagate Technology Holdings plc (NASDAQ: STX), a leader in mass-capacity data storage innovation, has released its financial results for the fiscal first quarter ending September 27, 2024.
Key Financial Metrics
| Metric | Q1 2025 | Wall Street Consensus |
|---|---|---|
| Total Revenue | $2.17 billion | $2.13 billion |
| GAAP Diluted EPS | $1.41 | - |
| Non-GAAP Diluted EPS | $1.58 | $1.48 |
| Cash Flow from Operations | $95 million | - |
| Free Cash Flow | $27 million | - |
Interpretation: Seagate's performance in the fiscal first quarter exceeded Wall Street consensus estimates, with total revenue and non-GAAP diluted EPS surpassing expectations. The increase in revenue reflects strong market demand and successful product strategies. However, the GAAP EPS was slightly below the expected non-GAAP performance, indicating some extraordinary expenses or adjustments not covered in the non-GAAP figures.
Key Developments and Operational Highlights
- Gross Margin Expansion: Achieved the highest gross margin level in over a decade.
- Product Momentum: Successfully ramped up 28-terabyte nearline drives and expanded cloud customer qualifications on HAMR-based Mozaic products.
- Dividend Increase: The quarterly dividend was raised by approximately 3% to $0.72 per share.
Comments from Company Officers
Dave Mosley, CEO of Seagate, noted that the company is off to an outstanding start for fiscal year 2025. He highlighted the successful execution of plans to ramp up product offerings and broaden customer engagement, which is expected to drive profitable growth going forward. Mosley expressed confidence in the company's ability to capitalize on future opportunities.
Dividend Announcement
Seagate announced a quarterly cash dividend of $0.72 per share, payable on January 6, 2025, for shareholders of record as of December 15, 2024.
Forward Guidance
For the fiscal second quarter of 2025, Seagate anticipates revenue of $2.30 billion, plus or minus $150 million, and non-GAAP diluted EPS of $1.85, plus or minus $0.20. The guidance excludes certain share-based compensation expenses and other possible impacts that could not be reasonably predicted.
Stock Price Movement
Following the earnings release, Seagate's stock experienced a decline, with a percentage change of -2.67%.
[Note: Several segments require specific data from the earnings release that was not provided, hence they were omitted in this summary.]
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