Seagate Technology introduces Financial Results for Second Quarter of Fiscal 2025

Seagate’s Strong Q2 Performance

Seagate Technology Holdings plc, a heavyweight in the world of mass-capacity data storage, just dropped its financial results for the fiscal second quarter ending December 27, 2024, and let’s just say, they’re ending the year on a high note. CEO Dave Mosley shared some exciting insights: “Seagate ended calendar 2024 on a strong note as we grew revenue, gross margin, and non-GAAP EPS successively in each quarter of the year.” That’s a mouthful, but it essentially means they’re doing really well. Mosley went on to highlight a decade-high gross margin performance, which is a fancy way of saying they’re making more money from their sales than they have in a long time.

What’s driving this success? According to Mosley, it’s all about structural improvements and a keen focus on capturing value in a market that’s getting more demanding—especially with the rise of AI. They’ve even started rolling out their new HAMR-based Mozaic products to cloud customers, boasting capacities of up to a staggering 36 terabytes. Talk about scalable and efficient storage solutions! With all this momentum, it seems Seagate is poised for some solid growth in fiscal 2025.

Financial Highlights

During this latest quarter, Seagate generated an impressive $221 million in cash flow from operations and $150 million in free cash flow. They also returned $148 million to shareholders through their quarterly dividend. As of the end of the quarter, the company had a healthy cash reserve of $1.2 billion, with 212 million ordinary shares floating around. Not too shabby, right?

Quarterly Cash Dividend Announcement

In a move that’s sure to please investors, the Board of Directors declared a quarterly cash dividend of $0.72 per share. Mark your calendars—this will be payable on April 2, 2025, to shareholders who are on record as of March 19, 2025. Of course, future dividends will depend on a variety of factors, including Seagate’s financial health and operational results, so it’s a good idea to keep an eye on those numbers.

Looking Ahead: Business Outlook

What’s next for Seagate? They’ve shared some guidance for the fiscal third quarter of 2025, projecting revenue of around $2.10 billion, give or take $150 million. They’re also estimating a non-GAAP diluted EPS of $1.70, plus or minus $0.20. But here’s the kicker: they’re not providing a full reconciliation of these estimates to GAAP measures because some factors—like potential losses from debt redemption or strategic investments—are just too unpredictable.

So, while the outlook is promising, it’s essential to remember that actual results could vary significantly based on a host of factors. Seagate is navigating a complex landscape, but with their innovative approach and solid financial footing, they seem ready to tackle whatever comes next.

In the fast-paced world of data storage, it’s clear that Seagate is not just keeping up; they’re setting the pace. What do you think about their trajectory? Are they on the right path to capitalize on the growing demand for data solutions? Only time will tell!

Background Information

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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.

  

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