Seagate tops earnings expectations as cloud data-center demand remains strong
Seagate Technology Holdings PLC (STX) delivered better-than-expected earnings Friday morning and issued a forecast for the current period that exceeded analyst expectations at the midpoint. The company reported fiscal first-quarter net income of $526 million, or $2.28 a share, up from $223 million, or 86 cents a share, in the year-earlier period. On an adjusted basis, Seagate earned $2.35 a share, up from 93 cents a year prior and ahead of the FactSet consensus, which called for $2.21 a share. Seagate's revenue increased to $3.12 billion from $2.31 billion, while analysts had been looking for $3.11 billion. The company benefited from "ongoing demand from cloud data-center customers and strength in the video and image applications markets," Chief Executive Dave Mosley said in a release. For the fiscal second quarter, the company expects $2.95 billion to $3.25 billion in revenue and $2.20 to $2.50 a share in adjusted earnings. Analysts were modeling $3.0 billion in revenue and $2.13 in adjusted earnings per share for the December quarter. Seagate shares have declined 1.1% over the past three months as the S&P 500 has added 4.4%.
(END) Dow Jones Newswires
October 22, 2021 08:33 ET (12:33 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.