Seagate Technology Holdings Plc. (STX) shares traded mostly flat in Tuesday's extended session after delivering a second quarter that handily beat Wall Street's expectations on both the top and bottom lines.
The Numbers Tell a Strong Story
Seagate reported quarterly earnings of $3.11 per share, crushing the analyst consensus estimate of $2.81 by 10.52%, according to market data. Revenue came in at $2.83 billion, beating the Street estimate of $2.73 billion and showing solid growth from the $2.33 billion reported in the same period last year.
The quarter wasn't just about beating estimates. The company achieved something even more impressive: record-setting profitability metrics across the board.
"Seagate's December quarter results exceeded our expectations on both the top and bottom line, setting new records for gross margin, operating margin and non-GAAP EPS. This performance highlights our team's strong operational execution, the durability of data center demand, and the ongoing ramp of our HAMR-based Mozaic products," said Dave Mosley, CEO of Seagate.
Looking Ahead
The guidance for next quarter suggests this momentum isn't slowing down. Seagate expects third quarter adjusted EPS of $3.20 to $3.60, well above the $2.96 analyst estimate. Revenue is projected to land between $2.8 billion and $3 billion, versus the $2.77 billion consensus.
Despite the strong results and optimistic outlook, Seagate stock slid 2.28% to $363.27 in Tuesday's extended trading.
