Seagate Unveils Strong Fiscal Q3 2024 Financial Results, Showcasing Technological Triumph

Seagate Technology Holdings reports impressive financial results for the fiscal third quarter of 2024, with a 6% revenue growth and doubled non-GAAP EPS, driven by strong operational strategies and rising demand for cloud services, and anticipates further gains with the upcoming launch of their Mozaic products featuring HAMR technology.

6% growth in revenue
Doubled non-GAAP EPS compared to previous quarter
Strong operational strategies and effective pricing

Seagate Technology Holdings, the pioneer in mass-capacity storage solutions, has released its financial results for the fiscal third quarter ending on March 29, 2024. The company reported a 6% growth in revenue and more than doubled non-GAAP EPS compared to the previous quarter. This impressive performance can be attributed to the rising demand for cloud services, Seagate’s strong operational strategies, and effective pricing. Dave Mosley, Seagate’s CEO, expressed optimism about the future, stating that the current demand environment aligns perfectly with the upcoming launch of their Mozaic products, featuring HAMR technology. These products are expected to offer significant economic value to customers and drive further financial gains for Seagate.

In terms of financial highlights, Seagate generated $188 million in cash flow from operations during the third quarter, with $128 million in free cash flow. Additionally, the company returned $147 million of capital to shareholders through its quarterly dividend. At the end of the quarter, Seagate held $795 million in cash and cash equivalents, with 210 million ordinary shares issued and outstanding.

Seagate’s Board of Directors also declared a quarterly cash dividend of $0.70 per share, payable on July 5, 2024, to shareholders of record as of June 20, 2024. The decision to pay future dividends will be based on various factors such as Seagate’s financial position, results of operations, available cash, and capital requirements.

Looking ahead, Seagate provided guidance for its fiscal fourth quarter of 2024. The company anticipates revenue of $1.85 billion, with a potential variance of $150 million. The non-GAAP diluted EPS is projected to be $0.70, with a possible fluctuation of $0.20. It is important to note that these projections exclude estimated share-based compensation expenses of $0.16 per share.

Seagate acknowledges that reconciling non-GAAP diluted EPS guidance to the corresponding GAAP measure is challenging due to certain factors beyond their control or prediction. These factors include accelerated depreciation, impairment charges, net gain or loss from debt redemption, purchase order cancellation fees, strategic investment losses or gains, income tax adjustments, and other charges or benefits that may arise. Consequently, a reconciliation of the non-GAAP diluted EPS guidance to the GAAP measure is not currently available without unreasonable effort.

For a more comprehensive overview of Seagate’s financial results, including a reconciliation of GAAP to non-GAAP figures, interested parties can refer to the company’s Supplemental Financial Information document available on Seagate’s Investor Relations website.

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Background Information

About Seagate:

Seagate Technology, founded in 1978, is a leading data storage solutions provider that specializes in hard drives and storage solutions for consumers, businesses, and data centers. With a reputation for reliability and innovation, Seagate's products address diverse storage needs, from individual data storage to large-scale enterprise environments. The company has played a crucial role in shaping the data storage landscape and continues to be at the forefront of technological advancements.