Seagate Technology (NASDAQ: STX) reported Q2 EPS of $1.35, $0.03 better than the analyst estimate of $1.32. Revenue for the quarter came in at $2.7 billion versus the consensus estimate of $2.72 billion.

• Reported revenue of $2.7 billion
• Expanded GAAP operating margin to 14.2%; non-GAAP operating margin to 15.7%
• Delivered GAAP diluted earnings per share (EPS) of $1.20; non-GAAP diluted EPS of $1.35
• Returned $315 million to shareholders; declared cash dividend of $0.65 per share

“In the December quarter, Seagate expanded non-GAAP operating margin by nearly 300 basis points and delivered non-GAAP EPS growth of more than 30% quarter-over-quarter while driving strong operational cash flow in an improving demand environment,” said Dave Mosley, Seagate’s chief executive officer.

“We executed the company's fastest ever product ramp with our industry capacity leading 16-terabyte drives, which contributed to both sequential revenue growth and record exabyte shipments in the December quarter. We are poised to benefit from ongoing demand for mass capacity storage which we expect to offset typical seasonal declines in the legacy markets in the first half of the calendar year.”

GUIDANCE:

Seagate Technology sees Q3 2020 EPS of $1.35, versus the consensus of $1.27. Seagate Technology sees Q3 2020 revenue of $2.7 billion, versus the consensus of $2.59 billion.

The business outlook for the fiscal third quarter 2020 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 2020:

• Revenue of $2.7 billion, plus or minus 7%
• Non-GAAP diluted EPS of $1.35, plus or minus 7%

Guidance regarding non-GAAP diluted EPS excludes known charges related to amortization of acquired intangible assets and estimated share-based compensation expenses of $0.05 per share and $0.11 per share, respectively.

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