Seagate shares are up 20% on Thursday: explore why

0 comment

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.

La notizia Seagate shares are up 20% on Thursday: explore why era stato segnalata su Invezz.

Related Posts