Seagate Technology Holdings plc (NASDAQ:STX) delivered a strong fiscal third quarter, outperforming analyst expectations in earnings while providing an optimistic outlook for the coming quarter. Shares experienced a 2.74% increase in the after-market session.
The company reported adjusted earnings per share (EPS) of $0.33, surpassing the consensus estimate of $0.29. Revenue for the quarter was $1.66 billion, slightly below the anticipated $1.68 billion. Seagate’s CEO, Dave Mosley, attributed the solid performance to a 6% growth in revenue and a substantial increase in non-GAAP EPS, which more than doubled from the previous quarter. Mosley highlighted improving cloud demand, operational discipline, and pricing execution as key factors.
Compared to the same quarter last year, Seagate’s revenue saw a decline from $1.86 billion. However, the company anticipates fiscal fourth-quarter adjusted EPS to be $0.70, plus or minus $0.20, which is notably higher than the analyst consensus of $0.60. The company also forecasts revenue to reach $1.85 billion, plus or minus $150 million, surpassing the consensus estimate of $1.822 billion. The midpoint of the guidance range for both EPS and revenue is above the analyst consensus, indicating a bullish outlook from the company.
Seagate’s management remains committed to shareholder returns, declaring a quarterly cash dividend of $0.70 per share, payable in July 2024. As of the end of the quarter, the company had $795 million in cash and cash equivalents and had returned $147 million to shareholders through dividends.
