Seagate Technology Holdings plc (NASDAQ:STX) Citi's 2024 Global TMT Conference September 4, 2024 10:00 AM ET Company Participants Gianluca Romano - Chief Financial Officer Shanye Hudson - Investor Relations Conference Call Participants Asiya Merchant - Citigroup Asiya Merchant All right. Good morning, everyone or early afternoon. Welcome to Citi's 2024 Global TMT Conference. My name is Asiya Merchant. I'm part of Citi's Technology, hardware and tech supply chain coverage. Very pleased to have Gianluca Roman ...

Company and Industry Overview * **Company**: Seagate Technology Holdings plc (NASDAQ:STX) * **Industry**: Hard Disk Drive (HDD) manufacturing and storage solutions * **Event**: Citi's 2024 Global TMT Conference, September 4, 2024 Key Points Revenue and Profitability * **Revenue**: Sequential revenue growth of more than 10% expected for Q3 2024, with guidance ranging from $1.05 to $1.40 billion. * **Profitability**: Sequential profit guidance increased from $1.05 to $1.40 billion, with the midpoint of $1.25 billion expected to be surpassed. * **Driver**: Improved mix of 48TB CMR and 28TB SMR drives, along with better pricing than expected. Market Segments * **Cloud**: Cloud segment remains the primary driver of growth, with sequential improvement since September 2023. * **Enterprise OEM**: Enterprise OEM segment starting to improve, driven by server demand and potential AI applications. * **Video Image Application**: Video image application segment expected to contribute to the upcycle in the next few quarters. Demand Drivers * **Data Growth**: Continuous growth in data storage driven by various applications, including AI. * **AI**: AI expected to be a significant demand driver for HDDs, particularly in the long term. * **Capacity**: Focus on profitability and long-term demand, with disciplined capacity management to limit the impact of down cycles. Technology and Product Roadmap * **HAMR**: HAMR technology progressing well, with qualifications in multiple market segments, including enterprise OEM and video image applications. * **Capacity**: HAMR drives expected to achieve 40TB per disk by the end of 2025, with lower cost per terabyte compared to PMR drives. * **Cost**: HAMR drives expected to have similar unit cost as PMR drives, with higher capacity and improved profitability. SSD Cannibalization * **Cloud**: SSD cannibalization not significant in the cloud segment, with HDDs still dominating storage solutions. * **Enterprise**: SSD cannibalization expected to increase in the enterprise space, particularly for low-capacity drives. * **Legacy**: Legacy HDD segments (mission-critical, client, and consumer) expected to decline in importance, with focus shifting to mass capacity and HAMR drives. Capital Allocation * **Debt Reduction**: Focus on reducing debt to approximately $5 billion, with potential share buyback in the future. * **Dividend**: Dividend remains a priority for shareholder return, with protection during the down cycle.

Investors might want to bet on Seagate (STX) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this electronic storage maker, should get reflected in its stock price. After all, empirical research shows a strong correlation betw ...

O SEAGATE SUPPLEMENTAL FINANCIAL INFORMATION Q2FY24 JANUARY 24, 2024 Safe Harbor Statement and Use of Non-GAAP Financial Information This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements abou ...

O SEAGATE SUPPLEMENTAL FINANCIAL INFORMATION Q3FY24 APRIL 23, 2024 Safe Harbor Statement and Use of Non-GAAP Financial Information This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements about ...

O SEAGATE SUPPLEMENTAL FINANCIAL INFORMATION Q4FY24 JULY 23, 2024 Safe Harbor Statement and Use of Non-GAAP Financial Information This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements about t ...

It has been about a month since the last earnings report for Seagate (STX) . Shares have lost about 4.7% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Seagate due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Seagate's Q4 Earnings Beat EstimatesSeagate reported ...

Seagate Technology Holdings plc (STX) is continuing its upward trajectory, with an appreciation of 19.2% year to date compared with the S&P 500 composite and sub-industry’s growth of 16.5% and 17.6%, respectively.Image Source: Zacks Investment ResearchSolid financial performance is buoying the stock’s trajectory. STX’s earnings beat estimates in three of the last four quarters, delivering an average surprise of 80.9%.Image Source: Zacks Investment ResearchTechnical indicators are also supportive of STX’s st ...

Dividend stocks are one of the best investments you can make. Companies that reward their shareholders with regular, growing payments can help to set you up for a comfortable retirement quickly.Yet not all dividend stocks are made equal. Sometimes company financials have deteriorated to the point where it has no business paying a dividend, or at least not as large as it has been.Even amongst Dividend Aristocrats and Dividend Kings, companies that have increased their payouts for 25 years and 50 years, respe ...

AlexLMX/iStock via Getty Images Seagate Technology Holdings (NASDAQ:STX) is poised to perform well as the global enterprise solid state drives [SSDs] market is expected to grow at a strong pace of about 10.4% annually to 2030. This growth should provide a strong tailwind for Seagate's enterprise storage solutions. Seagate has an attractive valuation with strong expected revenue and earnings growth, which is likely to drive the stock to outperform over the next few years. The recent sell-off in the stock ...