Seagate Q2 beats Street estimates, issues third quarter guidance

Investing.com — Seagate Technology PLC (NASDAQ:STX) on Tuesday reported a better than expected quarterly profit and revenue helped by demand for its data storage solutions. Shares of Seagate were about 1% higher at $102 in aftermarket trading.

The company reported second-quarter adjusted earnings per share of $2.03, exceeding analysts’ expectations of $1.87. Net income was $336 million. 

Revenue for the reported quarter came in at $2.33 billion, slightly above the consensus estimate of $2.32 billion.

Seagate provided revenue guidance for the third quarter of $2.10 billion, plus or minus $150 million, and projected non-GAAP diluted earnings per share of $1.70, plus or minus $0.20.

The company is betting on its heat-assisted magnetic recording (HAMR) technology to drive demand for higher-capacity storage solutions as cloud providers and enterprises expand their data infrastructure.

“We began ramping HAMR-based Mozaic products to our lead cloud customer in the December quarter and are already sampling in capacities of up to 36 terabytes,” said CEO Dave Mosley.

“Looking ahead, we believe Seagate is in a great position to deliver profitable growth in fiscal 2025.”