Seagate Slides on Q4 Results

Seagate Technology PLC (NASDAQ:STX) reported upbeat results for its fourth quarter. The company also said it expects Q3 adjusted earnings of $1.15 to $1.45 per share on revenue of $2.45 billion to $2.85 billion.

The company reported revenue of $2.62 billion for the second quarter.

GAAP operating margin was 13.3%; non-GAAP operating margin of 14.7% GAAP diluted earnings per share (EPS) of $1.12; non-GAAP diluted EPS of $1.29

Cash flow from operations was $473 million and free cash flow was $314 million. Seagate returned $1.2 billion to shareholders through dividends and the repurchase of 18 million ordinary shares. It also declared cash dividend of $0.67 per share

"Seagate delivered strong, double-digit revenue, earnings and free cash flow growth in the December quarter supported by broad-based improvement across nearly every served market and geography, and we had solid customer demand for our mass capacity products," said CEO Dave Mosley.

"We also achieved our technology milestone by shipping 20-terabyte HAMR drives in calendar 2020, paving the way for Seagate’s continued success for years to come.

"As demand for data increases in both the cloud and at the edge, Seagate's new Lyve Storage Platform complements our HDD portfolio to help businesses address both the secular demand for mass capacity storage and the increasing complexity of managing data from edge-to-core cloud."

STX shares swooned $4.35, or 6.9%, to $58.59.