Revenue and Earnings - Revenue increased to $2.33 billion in fiscal Q2 2025, up from $1.56 billion in fiscal Q2 2024[4][6] - GAAP diluted EPS of $1.55 and non-GAAP diluted EPS of $2.03 in fiscal Q2 2025[4][6] - Fiscal Q3 2025 revenue guidance of $2.10 billion, plus or minus $150 million[14] - Fiscal Q3 2025 non-GAAP diluted EPS guidance of $1.70, plus or minus $0.20[14] - Net income for the six months ended December 27, 2024, was $641 million, compared to a net loss of $203 million for the same period in 2023[22] - Non-GAAP net income for the six months ended December 27, 2024, was $770 million, compared to a net loss of $21 million in the same period in 2023[28] Gross and Operating Margins - Gross margin improved to 34.9% (GAAP) and 35.5% (non-GAAP) in fiscal Q2 2025, compared to 23.3% (GAAP) and 23.6% (non-GAAP) in fiscal Q2 2024[4] - Non-GAAP gross margin for the six months ended December 27, 2024, was 34.5%, up from 21.8% in the same period in 2023[26] - Non-GAAP operating margin for the six months ended December 27, 2024, was 21.8%, compared to 5.6% in the same period in 2023[26] Cash Flow and Liquidity - Cash flow from operations of $221 million and free cash flow of $150 million in fiscal Q2 2025[5][6] - Cash and cash equivalents totaled $1.2 billion as of December 27, 2024[5] - Free cash flow for the six months ended December 27, 2024, was $177 million, up from $156 million in the same period in 2023[28] - Net cash provided by operating activities for the six months ended December 27, 2024, was $316 million, compared to $296 million in the same period in 2023[22] - Free cash flow is defined as net cash from operating activities less acquisition of property, equipment, and leasehold improvements[41] Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.72 per share[6][7] Product Development and Innovation - Seagate began ramping HAMR-based Mozaic products with capacities up to 36 terabytes in the December quarter[3] Balance Sheet and Assets - Total assets increased to $7.96 billion as of December 27, 2024, up from $7.74 billion as of June 28, 2024[18] Non-GAAP Adjustments and Metrics - Share-based compensation for the six months ended December 27, 2024, was $87 million, up from $55 million in the same period in 2023[26] - Share-based compensation expenses are excluded from non-GAAP results to enhance understanding of the company's underlying performance and facilitate peer comparison[36] - Strategic investment gains, losses, and impairment charges are excluded from non-GAAP results due to their inconsistency in amount and frequency[37] - IT transformation costs are excluded from non-GAAP results as they are inconsistent in amount and frequency[38] - Income tax adjustments are calculated using a hybrid method and effective tax rate for non-GAAP adjustments[39] - Non-GAAP diluted share count adjustments exclude certain dilutive shares to reduce potential dilution from capped call transactions[40] - Adjusted EBITDA excludes non-core operating expenses such as impairment charges, restructuring costs, and share-based compensation[42] - LTM adjusted EBITDA is used to evaluate the company's debt portfolio and compliance with financial covenants[42] - Non-GAAP EBITDA for the last twelve months ended December 27, 2024, was $1,823 million[30] One-Time Events and Adjustments - The company recorded a pre-tax net gain of $313 million from the sale of System-on-Chip Operations in April 2024[32] - The company incurred $1 million in purchase order cancellation fees for the six months ended December 27, 2024, down from $114 million in the same period in 2023[28]

Seagate Technology Holdings plc (STX) Announcements - Seagate has announced the shipment of Exos M hard drive samples with capacities of up to 36TB, utilizing the Mozaic 3+ platform featuring HAMR technology [1] - The Exos M drives are designed to meet the massive storage needs of modern data centers, addressing exponential data growth driven by cloud and AI adoption [2] - The company is scaling production of Exos M drives with capacities of up to 32TB for a leading cloud service provider and sampling 36TB drives [3] Exos M Drive Benefits - Exos M drives offer 300% more storage capacity within the same footprint, 25% lower cost per terabyte, and 60% lower power consumption per terabyte compared to Exos X10 drives [3] - The drives feature an efficient 10-platter design, achieving 3.6TB per platter, with plans to increase this to 10TB per platter in the future [4] HAMR Technology and Market Trends - Seagate expects HAMR technology to capitalize on megatrends like AI and machine learning, driving long-term demand for cost-effective mass-capacity storage solutions [5] - The company's 24TB CMR and 28TB SMR drives now represent the second-highest revenue product, contributing over 20% of total nearline revenues [5] Mozaic 3+ Platform Adoption - Adoption of the Mozaic 3+ platform is gaining momentum, with qualification progressing well with a lead CSP customer and expanded qualifications with other cloud and enterprise customers [6] - Seagate anticipates delivering further capacity increases through areal density gains with its Mozaic 4+ platform, leading to cost savings for customers [6] Financial Outlook - Seagate anticipates Q2 fiscal 2025 revenues to be $2.3 billion (+/- $150 million), driven by strengthening nearline demand from global cloud customers and improvements in enterprise and OEM markets [7] - The increase in mass capacity revenues is expected to offset lower revenues from legacy and other markets [7] Stock Performance - Seagate's shares have surged 12.1% in the past year, outperforming the industry's growth of 1.5% [9] Broader Technology Sector Stocks - InterDigital, Inc (IDCC) sports a Zacks Rank 1 (Strong Buy) with a long-term earnings growth rate of 15% and shares up 39.3% in the past six months [12] - NetApp, Inc (NTAP) carries a Zacks Rank 2 (Buy) with a long-term earnings growth rate of 7.2% and shares up 37.8% in the past year [13] - Intrusion Inc (INTZ) carries a Zacks Rank 2 (Buy) with shares surging 75% in the past six months [14]

Earnings Report and Estimates - Seagate Technology Holdings plc (STX) is scheduled to report second-quarter fiscal 2025 earnings on Jan 21 [1] - The Zacks Consensus Estimate for second-quarter fiscal 2025 earnings is $1 88 per share, unchanged in the past 60 days [2] - The Zacks Consensus Estimate for revenues is $2 31 billion, indicating a 48 6% increase from the year-ago quarter [2] - Management anticipates second-quarter fiscal 2025 revenues to be $2 3 billion (+/- $150 million) and non-GAAP earnings to be $1 85 per share (+/- 20 cents) [3] - STX's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 85 1% [3] Factors Driving Performance - Seagate expects continued improvements in mass capacity due to strengthening nearline demand from global cloud customers and improvement in the enterprise & OEM markets [4] - Cloud service providers are focusing on AI applications and cloud infrastructure development, with HDDs expected to play a key role in AI adoption [5] - Secular trends and innovations in aerial density are likely to have spurred mass capacity storage demand [6] - The launch of the Mozaic 3+ hard drive platform with Heat-Assisted Magnetic Recording technology has positioned Seagate well in the mass capacity storage solutions market [6] - 24TB CMR/28TB SMR drives now represent the second-highest revenue product, contributing over 20% of total nearline revenues in the last reported quarter [6] Revenue and Margin Expectations - Mass capacity revenues are expected to increase 75 6% year over year to $1,861 5 million in the fiscal second quarter [7] - HDD segment revenues are estimated at $2,133 5 million, a 54 2% increase from the year-ago quarter [7] - Non-HDD segment revenues are estimated at $171 1 million, unchanged from the prior-year level [7] - Non-GAAP gross margin is expected to be 34%, up from 23 6% in the prior year quarter, driven by a higher mix of mass capacity revenues and ongoing pricing actions [8] - Non-GAAP operating expenses are expected to be $285 million in the fiscal second quarter [8] Other Stocks to Consider - V F Corporation (VFC) has an Earnings ESP of +4 30% and a Zacks Rank 1, with quarterly earnings scheduled for Jan 29 [11][12] - Packaging Corporation of America (PKG) has an Earnings ESP of +0 96% and a Zacks Rank 2, with quarterly earnings scheduled for Jan 28 [13] - American Airlines Group Inc (AAL) has an Earnings ESP of +3 99% and a Zacks Rank 1, with quarterly earnings scheduled for Jan 23 [14]

The upcoming report from Seagate (STX) is expected to reveal quarterly earnings of $1.88 per share, indicating an increase of 1466.7% compared to the year-ago period. Analysts forecast revenues of $2.31 billion, representing an increase of 48.6% year over year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a company ...

The acquisition will expand Lilly's oncology pipeline with STX-478, the differentiated and potentially best-in-class, mutant-selective PI3Kα inhibitor currently in a Phase 1/2 clinical trialSTX-478 could potentially address 30-40% of people with hormone-positive breast cancer, building on Lilly's advancements against this diseaseINDIANAPOLIS and BOSTON, Mass., Jan. 13, 2025 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) and Scorpion Therapeutics, Inc. ("Scorpion"), a private biotechnology company develop ...

In late August, I wrote an analysis piece on Seagate Technology (NASDAQ: STX ) in which I labeled the company a buy. This was down from my pieces in 2015 and 2017 , asI’m Jason Ditz and I have 20 years of experience in foreign policy research. My work has appeared in Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times and the Detroit Free Press, as well as American Conservative Magazine and the Quincy Institute for Responsible Statecraft. I have been writing investment analy ...

Seagate Technology Holdings plc (STX) stock has slipped 9.9% in the past month compared with the industry and S&P 500 Composite’s decline of 4.2% and 2.7%, respectively.Price PerformanceImage Source: Zacks Investment ResearchThe stock fell 1% in the last trading session and closed at $88.69, trading near its 52-week low of $81.88. The factors that could have put downward pressure on the stock include concerns surrounding delays in the qualifications of its HAMR (Heat-Assisted Magnetic Recording) technology, ...

After helping to fuel the S&P 500 to record gains this year, the chip sector has taken a heavy step back, particularly over the past month as heavyweights Micron ( MU ) and Western Digital ( WDC ) signaledWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 20 ...

Seagate Technology Holdings plc (STX) stock has been on an upward trajectory amid broader market volatility. Despite solid year-to-date gains, STX’s valuation remains low, prompting investors to ponder if this represents a buying opportunity. Image Source: Zacks Investment ResearchSTX is currently trading at a forward 12 month price-to-sales ratio of 2.04X, a discount compared with the Zacks Computer & Technology sector’s 6.28X and the industry’s 3.12X.Image Source: Zacks Investment ResearchShares of STX ha ...

The digital domain has an insatiable appetite for data that is fueling a boom in the data storage industry. The International Data Corporation (IDC) projects a compound annual growth rate exceeding 10% for the overall data storage market through 2028, a trajectory primarily driven by the exponential growth of artificial intelligence (AI) and cloud computing. Within this rapidly expanding subsector of the technology sector, Seagate Technology NASDAQ: STX and Western Digital NASDAQ: WDC continue to face off a ...