Seagate Technology Holdings plc (STX) reported second-quarter fiscal 2024 non-GAAP earnings of 12 cents per share. The Zacks Consensus Estimate was pegged at a loss of 7 cents per share. The company reported non-GAAP earnings of 16 cents in the year-ago quarter.Management anticipated second-quarter fiscal 2024 non-GAAP loss to be 10 cents (+/- 20 cents).Non-GAAP revenues of $1.555 billion missed the Zacks Consensus Estimate by 0.3%. The figure declined 18% on a year-over-year basis. However, revenues improv ...

Financial Data and Key Metrics - Revenue for Q2 2024 was $1.56 billion, up 7% quarter-over-quarter, driven by improved cloud near-line demand and seasonal consumer drive sales [7][20] - Non-GAAP operating income tripled sequentially to $127 million, with non-GAAP operating margin expanding to 8.2% of revenue, up 540 basis points quarter-over-quarter [19][20] - Non-GAAP EPS was $0.12, exceeding the high end of the guidance range, reflecting improved demand trends and profitability focus [19][20] - Exabyte shipments grew 6% sequentially to 95 exabytes, with mass capacity shipments totaling 83 exabytes, up from 79 exabytes in the prior quarter [20][21] Business Line Performance - Mass capacity revenue increased 4% sequentially to $1.1 billion, driven by strong nearline cloud demand, offsetting declines in the VIA market [20] - Nearline product shipments grew to 65 exabytes, up from 56 exabytes in the prior quarter, reflecting improved demand among U.S. and China cloud customers [21] - Legacy product revenue rose to $324 million, driven by seasonal consumer demand, but is expected to decline in the March quarter post-holiday season [22] - Non-HDD business revenue increased to $171 million, primarily due to improved SSD demand [22] Market Performance - U.S. cloud market demand showed gradual recovery, with enterprise OEM demand stabilizing, while China's recovery is expected to be slower due to economic challenges [9][10] - Incremental demand was observed among non-U.S. cloud and enterprise customers in the December quarter, with expectations for VIA market recovery post-Lunar New Year [10] Strategic Direction and Industry Competition - The company launched the Mozaic platform, a breakthrough in mass capacity storage, leveraging HAMR technology to achieve higher aerial density and lower TCO for data center operators [6][13] - Mozaic is expected to drive significant TCO and sustainability benefits, with the first HAMR-based product nearing qualification completion and volume ramp starting in the March quarter [12][13] - The company is vertically integrating laser manufacturing to enhance supply flexibility and reduce production costs, supporting long-term profitability [16] Management Commentary on Operating Environment and Future Outlook - Management expects the September 2023 quarter to mark the bottom of the down cycle, with gradual recovery in demand and improved profitability [8][9] - The company is confident in achieving a 30% non-GAAP gross margin benchmark at quarterly revenues 20% below prior cyclical peaks [9] - Demand recovery is expected to continue, with nearline demand improving in the March quarter and beyond, supported by normalized inventory levels among CSP customers [21] Other Important Information - The company generated $100 million in free cash flow and returned $146 million to shareholders through dividends, maintaining strong liquidity with $2.3 billion available [25] - Capital expenditures were flat at $70 million, with fiscal 2024 CapEx expected to be significantly lower than fiscal 2023 [25] Q&A Session Summary Question: Outlook for HAMR units in H2 2024 and 2025 [30] - The company is focused on ramping HAMR aggressively in 2024, with expectations to drive significant exabyte growth in 2025 [31][32] Question: Margin ramp and underutilization charges [33] - Margins are expected to improve sequentially through 2024, driven by cost actions, pricing adjustments, and the ramp of HAMR products [35][36] Question: Hyperscaler inventory dynamics and pricing actions [38] - Hyperscaler inventory levels have improved, with demand expected to accelerate, particularly as AI applications drive data center investments [39][40] Question: OpEx trajectory and capital structure [43] - OpEx is expected to remain around $240 million for the next few quarters, with free cash flow improving as revenue and profitability increase [44][45] Question: Customer value of HAMR drives [46] - HAMR drives offer TCO benefits, with price per terabyte expected to be nominally lower, incentivizing transitions from lower-capacity drives [47] Question: HAMR transition timeline [48] - The HAMR transition is expected to be slower than the PMR transition due to longer cycle times, but the company aims to accelerate as yields improve [50] Question: Qualification to revenue recognition timeline [51] - Qualification timelines vary by customer, with some hyperscalers expected to complete qualifications in 2024, driving revenue recognition [52] Question: Gross margin trajectory [53] - The company expects to achieve 30% gross margins at lower revenue levels than previously anticipated, driven by HAMR ramp and demand recovery [54] Question: Pricing actions and margin improvement [55] - Pricing actions and mix improvements are contributing to margin recovery, with further improvements expected as demand strengthens [56][57] Question: Build-to-order program update [59] - The build-to-order program is active, providing better visibility and predictability for the supply chain, with progress improving each quarter [60] Question: Vertical integration of laser technology [61] - Vertical integration aims to enhance supply chain control and reduce costs over time, supporting the ramp of Mozaic products [62] Question: Gross margin drivers [64] - HAMR ramp and demand recovery are key drivers of gross margin improvement, with sequential improvements expected through 2024 [65][67] Question: Back-end testing capacity [68] - The company has sufficient back-end testing capacity to support the HAMR ramp, despite longer test cycles for higher-capacity drives [69][71] Question: Book-to-bill trends [72] - The company is seeing improved visibility and predictability in orders, supporting the build-to-order framework and supply chain stability [73] Question: Enterprise HDD revenue outlook [74] - The company expects sequential improvement in enterprise HDD revenue but does not provide specific guidance beyond the March quarter [75] Question: AI-related opportunities [85] - AI-related opportunities are still in early stages, with potential for increased demand as data center architectures evolve to support AI workloads [86][87]

For the quarter ended December 2023, Seagate (STX) reported revenue of $1.56 billion, down 17.6% over the same period last year. EPS came in at $0.12, compared to $0.16 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.56 billion, representing a surprise of -0.29%. The company delivered an EPS surprise of +271.43%, with the consensus EPS estimate being -$0.07.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Seagate (STX) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of a loss of $0.07 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 271.43%. A quarter ago, it was expected that this electronic storage maker would post a loss of $0.20 per share when it actually produced a loss of $0.22, delivering a surprise of -10%.Over the last four quarters, ...

FREMONT, Calif.--(BUSINESS WIRE)--Seagate® Technology Holdings plc (NASDAQ: STX), a world leader in mass-data storage infrastructure solutions, today shared the company’s fifth annual Diversity, Equity, and Inclusion (DEI) Report titled “Crafting an Inclusive Datasphere,” covering fiscal year 2023. The report outlines Seagate’s continued progress in the areas of Representation, Inclusion, Social impact, and Equity (RISE). Results in these focus areas include: Representation – Increased representation o ...

Investors are always looking for stocks that are poised to beat at earnings season and Seagate Technology Holdings plc (STX) , may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Seagate is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a ...

Seagate Technology Holdings plc (STX) is scheduled to report second-quarter fiscal 2024 earnings on Jan 24.The Zacks Consensus Estimate is pegged at a loss of 8 cents per share. STX reported earnings per share of 16 cents in the prior-year quarter. The consensus estimate for revenues is pegged at $1.55 billion, suggesting a decline of 18.1% on a year-over-year basis.Management anticipates second-quarter fiscal 2024 revenues to be $1.55 billion (+/- $150 million). Non-GAAP loss is expected to be 10 cents per ...

Wall Street analysts expect Seagate (STX) to post quarterly loss of $0.08 per share in its upcoming report, which indicates a year-over-year decline of 150%. Revenues are expected to be $1.55 billion, down 18.1% from the year-ago quarter.Over the last 30 days, there has been an upward revision of 233.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Prio ...

The Mozaic 3+ Difference: Seagate's unique technology platform brings together several industry-first innovations that overcome the challenges of increasing areal density, leading to unprecedented space and power savings. (Graphic: Business Wire)Mozaic 3+ is ramping volume, Mozaic 4+ is in productization phase with good internal results, and Mozaic 5+ has been demonstrated in lab tests. (Graphic: Business Wire)Mozaic 3+ is ramping volume, Mozaic 4+ is in productization phase with good internal results, and ...

FREMONT, Calif.--(BUSINESS WIRE)--Seagate Technology Holdings plc (NASDAQ: STX), a world leader in data storage infrastructure solutions, will report fiscal second quarter 2024 financial results after the market closes on Wednesday, January 24, 2024. The investment community conference call to discuss these results will take place that day at 2:00 PM PT / 5:00 PM ET. The live audio webcast can be accessed online at Seagate’s Investor Relations website at investors.seagate.com. About Seagate Seagate Techn ...