Shares of Seagate Technology Holdings plc (NASDAQ: STX) are up 20% on Thursday after the global data storage company reported market-beating results for its fiscal second-quarter late last night.
Important points in Seagate’s Q2 earnings report
At $501 million, Seagate said its net income came in nearly 80% higher than the same quarter last year. On an adjusted basis, it earned $2.41 per share. The California-headquartered firm generated $3.12 billion in revenue – an increase from $2.62 billion last year.
In comparison, analysts had forecast $2.36 of adjusted EPS on $3.11 billion in revenue. Seagate declared 70 cents a share of quarterly cash dividend on Thursday. In the earnings press release, CEO Dave Mosley said:
Barring any significant additional macro disruptions, we expect to build on our 2021 performance this calendar year, and beyond as favourable demand trends support revenue expansion consistent with our long-term financial model range of 3-to-6% growth.
Guidance for the fiscal third quarter
For the current quarter, Seagate forecasts up to $2.20 of adjusted per-share earnings on $2.75 billion to $3.05 billion in revenue versus experts at $2.03 in adjusted EPS on $2.89 billion in revenue. CEO Mosley added:
Calendar 2021 was an outstanding year for Seagate. Compared with the prior calendar year, we grew revenue by 18% and, more importantly, delivered free cash flow growth of 39%, which we are deploying effectively into our long-standing capital returns program.
STX closed 2021 with an 80% gain. Only days earlier, Seagate added Yolanda Lee Conyers to its board of directors. She has formerly worked at notable companies like Lenovo and Dell.
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Source: https://invezz.com/news/2022/01/27/seagate-shares-are-up-20-on-thursday-explore-why/