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Mar 29, 2024

Seagate Q3 2024 Earnings Report

Seagate's Q3 2024 financial results were released, showcasing revenue growth and improved EPS.

Key Takeaways

Seagate Technology reported a 6% increase in revenue to $1.66 billion and a significant rise in non-GAAP EPS, more than doubling over the previous quarter. This improvement was driven by growing cloud demand, strong operating discipline, and effective price execution.

Revenue reached $1.66 billion.

GAAP diluted EPS was $0.12, while non-GAAP diluted EPS was $0.33.

Generated $188 million in cash flow from operations and $128 million in free cash flow.

Declared a cash dividend of $0.70 per share.

Total Revenue
$1.66B
Previous year: $1.86B
-11.0%
EPS
$0.33
Previous year: -$0.28
-217.9%
GAAP Gross Margin
25.7%
Non-GAAP Gross Margin
26.1%
GAAP Operating Margin
8.6%
Gross Profit
$425M
Previous year: $319M
+33.2%
Cash and Equivalents
$795M
Previous year: $766M
+3.8%
Free Cash Flow
$128M
Previous year: $174M
-26.4%
Total Assets
$7.1B
Previous year: $7.97B
-10.9%

Seagate

Seagate

Forward Guidance

For the fiscal fourth quarter 2024, Seagate anticipates revenue of $1.85 billion, plus or minus $150 million, and non-GAAP diluted EPS of $0.70, plus or minus $0.20.

Positive Outlook

  • Revenue is expected to be $1.85 billion, plus or minus $150 million.
  • Non-GAAP diluted EPS is projected to be $0.70, plus or minus $0.20.
  • Guidance excludes known pre-tax charges related to estimated share-based compensation expenses of $0.16 per share.
  • Improving cloud demand
  • Strong operating discipline and price execution

Challenges Ahead

  • Actual results may differ materially due to various factors.
  • Material items that may impact GAAP measures are out of the company's control and/or cannot be reasonably predicted.
  • These unpredictable items include accelerated depreciation, impairment and other charges related to cost saving efforts.
  • Net (gain) loss recognized from early redemption of debt is also unpredictable.
  • Strategic investment losses (gains) or impairment charges, and income tax adjustments on these measures, are uncertain.