Seagate Technology (STX) Tops Q2 EPS by 16c, Revenues Beat; Offers 3Q EPS/Revenue Guidance

Seagate Technology (NASDAQ: STX) reported Q2 EPS of $1.29, $0.16 better than the analyst estimate of $1.13. Revenue for the quarter came in at $2.62 billion versus the consensus estimate of $2.56 billion.

• Revenue of $2.62 billion
• GAAP operating margin of 13.3%; non-GAAP operating margin of 14.7%
• GAAP diluted earnings per share (EPS) of $1.12; non-GAAP diluted EPS of $1.29
• Cash flow from operations of $473 million and free cash flow of $314 million
• Returned $1.2 billion to shareholders through dividends and the repurchase of 18 million ordinary shares
• Declared cash dividend of $0.67 per share

"Seagate delivered strong, double-digit revenue, earnings and free cash flow growth in the December quarter supported by broad-based improvement across nearly every served market and geography, and we had solid customer demand for our mass capacity products," said Dave Mosley, Seagate’s chief executive officer.

"We also achieved our technology milestone by shipping 20-terabyte HAMR drives in calendar 2020, paving the way for Seagate’s continued success for years to come. As demand for data increases in both the cloud and at the edge, Seagate's new Lyve Storage Platform complements our HDD portfolio to help businesses address both the secular demand for mass capacity storage and the increasing complexity of managing data from edge-to-core cloud. We are well positioned to benefit from the tremendous opportunities we foresee ahead and remain focused on enhancing value for our customers, employees and shareholders."

GUIDANCE:

Seagate Technology sees Q3 2021 EPS of $1.15-$1.45, versus the consensus of $1.26. Seagate Technology sees Q3 2021 revenue of $2.63-2.67 billion, versus the consensus of $2.63 billion.

The business outlook for the fiscal third quarter 2021 is based on our current assumptions and expectations; actual results may differ materially, as a result of, among other things, the important factors discussed in the Cautionary Note Regarding Forward-Looking Statements section of this release.

The Company is providing the following guidance for its fiscal third quarter 2021:

• Revenue of $2.65 billion, plus or minus $200 million
• Non-GAAP diluted EPS of $1.30, plus or minus $0.15

Guidance regarding non-GAAP diluted EPS excludes known charges related to amortization of acquired intangible assets of $0.02 per share and estimated share-based compensation expenses of $0.13 per share.

For earnings history and earnings-related data on Seagate Technology (STX) click here.

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