FREMONT, Calif. - Seagate Technology (NASDAQ:STX) Holdings plc (NASDAQ: STX), a world leader in data storage solutions, has reported a significant beat on earnings and revenue for its fiscal fourth quarter ended June 28, 2024.
The company announced non-GAAP diluted earnings per share (EPS) of $1.05, surpassing analyst estimates of $0.75 by $0.30. Revenue also exceeded expectations, coming in at $1.89 billion against the consensus estimate of $1.87 billion.
This performance represents an 18% revenue increase compared to the same quarter last year, signaling a robust financial quarter for Seagate. The company's stock price surged by 5% following the announcement.
Seagate's CEO, Dave Mosley, attributed the strong quarter to an improving cloud demand environment and the company's effective execution against its financial goals. "Seagate delivered robust financial performance for the June quarter amid an improving cloud demand environment, capping off a fiscal year of strong execution against our financial goals," said Mosley.
Looking ahead, Seagate provided guidance for the fiscal first quarter of 2025, projecting revenue of $2.10 billion, plus or minus $150 million, and non-GAAP diluted EPS of $1.40, plus or minus $0.20. The mid-point of this guidance range for EPS is $1.40, which excludes estimated share-based compensation expenses of $0.16 per share.
For the fiscal year 2024, Seagate reported revenue of $6.55 billion and adjusted EPS of $1.29, with a cash flow from operations of $918 million and free cash flow of $664 million. The company also returned $585 million to shareholders through dividends, underlining its commitment to delivering shareholder value.
Seagate's financial health is further evidenced by its strategic moves, including the sale of the System-on-Chip Operations for $600 million during the fiscal fourth quarter, which is expected to bolster the company's cash position by the end of fiscal year 2026.
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