Seagate Technology Q1 Highlights
* Revenue: $1.66 billion (in line with estimates)
* Non-GAAP EPS: $0.33 (exceeding estimates by 25.4%)
* Revenue guidance for Q2 CY2024: $1.85 billion (above estimates)
Key Points
* Seagate Technology’s revenue declined by 11% year-over-year, reflecting the cyclical nature of the semiconductor industry.
* The company’s gross margin improved significantly to 25.7% from 17.2% in the same quarter last year.
* Inventory days outstanding (DIO) increased to 88, suggesting higher inventory levels.
* Despite the revenue decline, Seagate’s EPS outperformance and upbeat guidance for the next quarter provide some optimism.
Outlook
Seagate Technology’s guidance for Q2 CY2024 implies a 15.5% year-over-year revenue growth. Analysts expect further growth over the next 12 months, with consensus estimates calling for 31.5% growth.
Conclusion
Overall, Seagate Technology’s Q1 results were mixed, with revenue slightly below estimates but EPS exceeding expectations. The company’s gross margin improvement and upbeat guidance for the next quarter are encouraging signs. However, the increase in inventory levels warrants attention. Investors should monitor Seagate’s progress closely as the semiconductor industry navigates through its current downcycle.
