Seagate Technology (NASDAQ: STX) reported strong financial results for the third quarter of fiscal year 2024, exceeding market expectations and driving a jump in share price. The company’s non-GAAP earnings per share came in at $0.33, surpassing the consensus forecast of $0.26. Seagate’s revenue for the quarter ended March 29 was $1.66 billion, in line with market projections.
Seagate’s CEO Dave Mosley attributed the company’s success to improving cloud demand, strong operating discipline, and effective price execution. He expressed confidence in Seagate’s ability to achieve target margin performance as markets recover.
The company’s Board of Directors declared a quarterly cash dividend of $0.70 per share, payable on July 5, 2024, to shareholders of record as of June 20, 2024. Seagate expects continued growth in the current quarter, with projected earnings per share of $0.70, plus or minus $0.20, on revenue of $1.85 billion, plus or minus $150 million.
In a strategic move, Seagate announced the sale of certain intellectual property, equipment, and assets related to the design, development, and manufacture of their system-on-chip products to Avago Technologies for $600 million.
Seagate’s performance is a testament to the company’s winning strategy centered around HAMR technology, growing margins, and an anticipated demand cycle. With its strong fundamentals and continued focus on innovation, Seagate is well-positioned for further success in the dynamic data storage industry.
