Seagate Technology Falls Despite Q1 Earnings Beat And Rising Margins
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Seagate Technology Holdings PLC (NASDAQ:STX) shares are trading lower on Wednesday. The company reported first-quarter revenue of $2.17 billion, beating the consensus of $2.119 billion.
Adjusted gross margin rose to 33.3% from 19.8% a year ago quarter. Adjusted operating margin escalated to 20.4% from 2.8% in the prior-year quarter. Adjusted EPS of $1.58 beat the consensus of $1.46.
In the first quarter, the company generated an operating cash flow of $95 million and a free cash flow of $27 million.
The company returned $147 million to shareholders via its quarterly dividend. As of September 27, cash and cash equivalents totaled $1.2 billion.
Dividend: The Board of Directors declared a cash dividend of $0.72 per share, payable on January 6, 2025, to shareholders of record as of December 15, 2024.
Outlook: Seagate Technology expects second-quarter adjusted EPS of $1.85 (± $0.20), against the consensus of $1.70, and revenue of $2.30B (± $150 million), versus the $2.29 billion estimate.
Dave Mosley, Seagate’s chief executive officer said, “We executed on our plans to aggressively ramp our 28-terabyte nearline drives and broaden the number of cloud customers entering qualification on HAMR-based Mozaic products.”
Investors can gain exposure to the stock via StockSnips AI-Powered Sentiment US All Cap ETF (NASDAQ:NEWZ) and Affinity World Leaders Equity ETF (BATS:WLDR).
Price Action: STX shares are down 6.66% at $105.14 at the last check Wednesday.
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