FREMONT, Calif. - Seagate Technology (NASDAQ:STX) Holdings plc (NASDAQ:STX) reported a solid fiscal third quarter, surpassing analyst earnings expectations and providing an optimistic outlook for the coming quarter. Shares were up 2.74% in the after-market session.
The company posted adjusted earnings per share (EPS) of $0.33, exceeding the consensus estimate of $0.29. Revenue for the quarter was $1.66 billion, slightly missing the anticipated $1.68 billion.
Seagate's CEO, Dave Mosley, attributed the strong performance to a 6% growth in revenue and a significant increase in non-GAAP EPS, which more than doubled from the previous quarter. Mosley highlighted improving cloud demand, operational discipline, and pricing execution as key factors. He also noted the strategic timing of demand improvements as the company prepares to ramp up its Mozaic products featuring HAMR technology, which is expected to bolster financial gains and leverage long-term mass capacity storage demand.
Compared to the same quarter last year, Seagate's revenue saw a decline from $1.86 billion.
Looking ahead, Seagate anticipates fiscal fourth-quarter adjusted EPS to be $0.70, plus or minus $0.20, which is notably higher than the analyst consensus of $0.60. The company also forecasts revenue to reach $1.85 billion, plus or minus $150 million, surpassing the consensus estimate of $1.822 billion. The midpoint of the guidance range for both EPS and revenue is above the analyst consensus, indicating a bullish outlook from the company.
Seagate's management remains committed to shareholder returns, declaring a quarterly cash dividend of $0.70 per share, payable in July 2024. As of the end of the quarter, the company had $795 million in cash and cash equivalents and had returned $147 million to shareholders through dividends.
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