On July 23, 2024, Seagate Technology Holdings PLC (STX, Financial) released its 8-K filing detailing the financial results for its fiscal fourth quarter and fiscal year ended June 28, 2024. Seagate, a leading supplier of hard disk drives for data storage to the enterprise and consumer markets, forms a practical duopoly in the market with its chief rival, Western Digital.
Quarterly Financial Performance
Seagate reported revenue of $1.89 billion for the fourth quarter of fiscal 2024, surpassing the analyst estimate of $1.87 billion. The company also reported GAAP diluted earnings per share (EPS) of $2.39 and non-GAAP diluted EPS of $1.05, significantly exceeding the estimated EPS of $0.56.
Key highlights from the quarterly results include:
| Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Revenue ($M) | 1,887 | 1,602 |
| Gross Margin | 31.8% | 19.0% |
| Operating Margin | 16.6% | 1.6% |
| Net Income (Loss) ($M) | 513 | (92) |
| Diluted EPS | 2.39 | (0.44) |
Annual Financial Performance
For the fiscal year 2024, Seagate reported revenue of $6.55 billion, slightly above the analyst estimate of $6.53 billion. The company achieved a GAAP diluted EPS of $1.58 and a non-GAAP diluted EPS of $1.29, outperforming the estimated annual EPS of -$0.27.
Key highlights from the annual results include:
| Metric | FY 2024 | FY 2023 |
|---|---|---|
| Revenue ($M) | 6,551 | 7,384 |
| Gross Margin | 23.4% | 18.3% |
| Operating Margin | 6.9% | (4.6)% |
| Net Income (Loss) ($M) | 335 | (529) |
| Diluted EPS | 1.58 | (2.56) |
Cash Flow and Dividend
During the fiscal fourth quarter, Seagate generated $434 million in cash flow from operations and $380 million in free cash flow. The company declared a cash dividend of $0.70 per share, payable on October 7, 2024, to shareholders of record as of September 23, 2024.
Commentary and Outlook
“Seagate delivered robust financial performance for the June quarter amid an improving cloud demand environment, capping off a fiscal year of strong execution against our financial goals. Q4 revenue grew 18% year-over-year, non-GAAP gross margin expanded to nearly 31%, and non-GAAP EPS exceeded the high end of our guidance range,” said Dave Mosley, Seagate’s chief executive officer.
Looking ahead, Seagate remains focused on driving profitability and maintaining supply discipline while continuing to execute its mass capacity product roadmap, anchored by its HAMR technology. The company’s data storage solutions offer cloud and enterprise customers cost, power, and space advantages that support their investments in critical AI and other data-driven initiatives.
For the fiscal first quarter of 2025, Seagate has provided guidance for revenue of $2.10 billion, plus or minus $150 million, and non-GAAP diluted EPS of $1.40, plus or minus $0.20.
For more detailed financial information, please refer to Seagate’s 8-K filing.
Explore the complete 8-K earnings release (here) from Seagate Technology Holdings PLC for further details.
