Financial Data and Key Metrics Changes - Seagate reported June revenue of $2,440 million, up 13% sequentially and 30% year over year [2][3] - Non-GAAP gross margin expanded by 170 basis points sequentially to 37.9% [2][7] - Non-GAAP operating margin increased by 270 basis points to 26.2% [2] - For fiscal 2025, revenue grew nearly 40% to $9,100 million, with non-GAAP EPS of $8.10 [3][11] - Non-GAAP net income was $556 million, resulting in non-GAAP EPS of $2.59 based on a diluted share count of approximately 215 million shares [8] Business Line Data and Key Metrics Changes - Hard drive revenue reached $2,300 million, a 14% sequential increase, driven by nearline cloud sales [3][4] - Mass capacity revenue exceeded $2,000 million, up 15% sequentially and 40% year on year [4] - Nearline shipments into cloud and edge data centers accounted for 91% of mass capacity volume, with shipments of 137 exabytes, up 14% sequentially and 52% year on year [4] - Sales from the legacy market totaled $270 million, up 6% sequentially, while revenue from other product lines increased 3% sequentially to $163 million [5] Market Data and Key Metrics Changes - Data center markets accounted for about 75% of fiscal 2025 revenue, including nearline products sold to cloud and enterprise customers [6] - The company plans to focus on two main areas: data center and edge IoT, reflecting the AI-driven market [6] Company Strategy and Development Direction - Seagate is ramping HAMR-based MOSEIK products and building customer momentum, with three major cloud service providers qualified on these products [5] - The company aims to maintain capital discipline, with anticipated capital expenditures for fiscal 2026 within the target range of 4% to 6% of revenue [10] - The strategic focus is on driving growth, enhancing profitability, and optimizing cash generation, supported by a structurally changed business model and leading technology roadmap [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained demand strength for high-capacity nearline drives, supporting revenue and margin expansion [11] - The company anticipates September revenue in the range of $2,500 million, reflecting a 15% improvement year over year [12] - Management noted that the global minimum tax rate will impact future earnings, with a projected non-GAAP tax rate of 16% [12][131] Other Important Information - Free cash flow nearly doubled in June to $425 million, with a commitment to return nearly 75% of free cash flow to shareholders [10][11] - Cash and cash equivalents increased 9% sequentially to $2,200 million, with a gross debt of approximately $5,000 million [11] Q&A Session Summary Question: Can you confirm the implied gross margin guidance for September? - Management indicated that the estimate was significantly lower than what is implied in the guidance, expecting higher revenue and margins than modeled [18][20] Question: What are the trends in AI inference edge demand? - Management noted strong demand for video properties in the cloud and various applications at the edge, indicating growth in data storage needs [24][25] Question: How is the HAMR contribution expected to change in the coming quarters? - Management confirmed steady growth in HAMR and expects a positive impact on gross margins as higher capacity drives are ramped up [34][35] Question: What is the outlook for revenue growth and capacity ramp? - Management stated that demand is strong and above supply, with guidance based on production capabilities and ongoing qualifications for new products [41][42] Question: How will the global minimum tax impact financials? - Management confirmed that the global minimum tax will affect both GAAP and non-GAAP tax rates, with a similar impact expected [131]

Financial Performance - Q4FY25 revenue reached $2.44 billion, a 30% increase year-over-year[6] - Non-GAAP gross margin for Q4FY25 was 37.9%, up approximately 700 bps year-over-year[6, 7] - Non-GAAP operating margin for Q4FY25 increased to 26.2%, up approximately 890 bps year-over-year[6, 7] - Non-GAAP diluted earnings per share (EPS) for Q4FY25 expanded to $2.59[6, 7] - Free cash flow for Q4FY25 nearly doubled quarter-over-quarter to $425 million[7] - FY25 revenue increased 39% year-over-year, with gross profit nearly doubling and operating profit more than tripling[7] Market and Technology - Hard drive revenue reached $2.3 billion, up 14% quarter-over-quarter[12] - Mass capacity revenue topped $2.0 billion, up 40% year-over-year[12] - Nearline shipments were 137 exabytes, up 52% year-over-year[12] - Average capacity per drive increased 3% quarter-over-quarter to 13 TB[6, 17] Guidance - Q1FY26 revenue is projected to be $2.50 billion ± $150 million[20] - Q1FY26 non-GAAP operating margin is expected to be in the mid-to-high twenties percentage of revenue[20] - Q1FY26 non-GAAP diluted earnings per share is guided at $2.30 ± $0.20[20]

Core Insights - New dividends are often indicative of a company's commitment to returning value to shareholders, suggesting potential for future increases in payouts [2][3] Group 1: New Dividends Overview - Millrose Properties (MRP) launched with an 8% yield, focusing on residential land development and selling homesites back to homebuilders like Lennar [4][5] - Bristow Group (VTOL) is a global helicopter transportation provider, primarily serving the offshore energy sector, and plans to initiate a dividend of 12.5 cents quarterly starting in February 2026 [10][11][14] - WillScot Holdings (WSC) announced a 7-cent quarterly dividend, despite potential revenue contraction in 2025, indicating room for future dividend growth [15][16][17] - Western Digital (WDC) initiated a 10-cent quarterly dividend after spinning off its NAND flash memory business, despite a history of cyclical losses [18][21][23] - Regeneron Pharmaceuticals (REGN) announced an 88-cent quarterly dividend amid concerns over declining sales of its key drug Eylea, with expectations for stabilization in revenues and profits by 2026 [24][30]

Company Overview - Western Digital Corporation (NASDAQ: WDC) is a leading American data storage company known for manufacturing hard drives, solid-state drives, and NAND flash memory [2] - The company is scheduled to announce its fiscal fourth-quarter earnings on July 30, 2025, with analysts expecting adjusted earnings of $1.48 per share on $2.47 billion in revenue [2] Earnings Expectations - The expected earnings indicate a year-over-year increase of 3% in earnings but a significant 34% drop in revenue compared to the same quarter of the previous year, which reported $1.44 per share and $3.76 billion in revenue [2] - This earnings announcement will be the second following the successful completion of Western Digital's planned separation from SanDisk, allowing the company to focus on its core HDD business [2] Historical Performance - Historically, Western Digital's stock has decreased after earnings announcements 53% of the time, with a median one-day loss of 3.1% and a maximum post-earnings decline of 10% [3] - The company currently has a market capitalization of $24 billion, with revenue over the last twelve months at $19 billion, generating $2.5 billion in operating profits and a net income of $1.7 billion [3] Trading Strategies - Event-driven traders can utilize historical performance patterns and the gap between actual earnings results and market expectations to inform their strategies [4] - Traders may choose to position themselves ahead of the earnings release or react after the announcement based on short- and medium-term returns [4] Post-Earnings Return Analysis - Over the last five years, there have been 19 documented earnings data points for Western Digital, with 9 positive and 10 negative one-day returns, resulting in positive returns observed about 47% of the time [5] - This percentage increases to 50% when considering data from the last three years [5] - The median of the 9 positive returns is 4.7%, while the median of the 10 negative returns is -3.1% [5] Correlation of Returns - Understanding the correlation between short-term and medium-term returns following earnings can help traders make informed decisions [6] - If the 1D post-earnings return is positive and shows high correlation with 5D returns, traders can position themselves "long" for the next 5 days [6]

Group 1 - Analysts project Seagate (STX) will announce quarterly earnings of $2.46 per share, a 134.3% increase year over year [1] - Revenues are expected to reach $2.41 billion, reflecting a 27.5% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 0.5% higher over the last 30 days, indicating a collective reevaluation by analysts [2] Group 2 - Analysts suggest that 'Revenue by Product Line- HDD- Legacy' will be $245.91 million, a decrease of 15.2% year over year [5] - The estimate for 'Revenue by Product Line- HDD- Mass Capacity' is projected at $2.01 billion, an increase of 39.6% from the prior-year quarter [5] - The consensus estimate for 'Capacity Shipped - Total' and 'Capacity Shipped - Legacy' remains N/A, with no prior year figures available [6] Group 3 - Over the past month, Seagate shares have returned +6.7%, outperforming the Zacks S&P 500 composite's +4.9% change [6] - Seagate currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [6]

Core Insights - Micron Technology's NAND revenues increased by 16% quarter over quarter to $2.2 billion in Q3 FY25, driven by a mid-20% rise in bit shipments due to strong demand for SSDs in client and data center markets [1][10] - The company achieved record market share in client SSDs and maintained record market share in data center SSDs for three consecutive quarters, reflecting its competitive advantage [2] - Micron launched new SSDs based on G9 QLC NAND, which offer up to four times the performance of typical QLC SSDs, expected to benefit from the growing adoption of AI in PCs [3] - Management anticipates NAND bit supply growth to remain below industry demand growth in 2025, potentially leading to increased prices and margin expansion [4] - The Zacks Consensus Estimate projects fiscal 2025 NAND revenues at $8.52 billion, indicating a year-over-year growth of 17.9%, with total revenues expected to grow 46.5% to $36.79 billion [5] Competitive Landscape - Micron competes with Western Digital in the NAND market, where Western Digital has a diversified portfolio including HDDs and NAND-based SSDs [6] - Seagate is a significant player in the HDD market and is expanding its presence in the SSD market through partnerships and portfolio expansion [7] Financial Performance - Micron's shares have gained 32.2% year to date, outperforming the Zacks Computer - Integrated Systems industry growth of 27.5% [8] - The company trades at a forward price-to-sales ratio of 2.61X, which is lower than the industry average of 3.76X [11] - The Zacks Consensus Estimate for Micron's fiscal 2025 earnings suggests a year-over-year growth of 497.7%, with 2026 earnings expected to grow by 57.9% [14]

Core Viewpoint - Seagate is expected to report fiscal Q4 earnings with no growth in earnings but a significant increase in sales, indicating a mixed outlook for the company [1][2]. Financial Performance - Analysts predict Seagate will announce earnings of $2.43 per share on sales of $2.42 billion, compared to $2.44 per share and $1.89 billion in the previous year, reflecting a 28% rise in sales [1]. - The company forecasts adjusted EPS for Q4 to range between $2.20 and $2.60, with revenue expected between $2.25 billion and $2.55 billion [2]. - Seagate's market capitalization currently stands at $32 billion, with total revenue over the past twelve months amounting to $8.5 billion, and operational profits of $1.6 billion, resulting in a net income of $1.5 billion [2]. Historical Trends - Historical data shows that Seagate's stock has risen 55% of the time in the one day following earnings announcements, with a median increase of 6.1% and maximum one-day positive returns reaching 12% [1][6]. - Over the last five years, there have been 20 earnings data points, with 11 positive and 9 negative one-day returns, leading to a positive return rate of approximately 55% [6]. - This positive return rate increases to 64% when considering data from the last three years [6]. Trading Strategies - Two strategies are suggested for traders: position before the earnings release based on historical chances or analyze the correlation between immediate and medium-term returns post-earnings [3]. - A relatively lower-risk strategy involves understanding the correlation between short-term and medium-term returns after earnings, allowing traders to make informed decisions based on historical data [7].

Group 1 - Pure Storage (NYSE: PSTG) was recovering from a decline after its fourth-quarter earnings announcement, which disappointed the market due to full-year guidance falling short of analysts' estimates [1] - Concerns were raised regarding the company's future performance following the earnings report [1] Group 2 - The article does not provide any additional relevant information regarding the industry or company beyond the performance of Pure Storage [2]

Market Overview - Wall Street's winning streak continues, driven by positive trade news and strong economic data, with the S&P 500 reaching a record high following a significant trade deal between the United States and Japan, which lowers tariffs and opens up $550 billion in new investments [1] - Retail sales exceeded expectations in June, and jobless claims decreased, indicating a robust labor market and steady consumer spending despite ongoing tariff concerns [1][9] Trade Negotiations and Economic Environment - Progress in trade negotiations with the U.K., Indonesia, and the Philippines, along with positive signals from China and the EU, creates an encouraging backdrop for equities [2] - The current earnings season is contributing to market momentum, suggesting that focusing on relative price strength can help investors identify leading stocks [2] Stock Recommendations - Recommended stocks based on relative price strength include Western Digital Corporation (WDC), Flowserve Corporation (FLS), OPENLANE, Inc. (KAR), AngloGold Ashanti plc (AU), and Jabil Inc. (JBL) [3][9] - These stocks are outperforming their peers, supported by strong relative price strength metrics [9] Relative Price Strength Strategy - Earnings growth and valuation multiples are crucial for assessing a stock's potential returns and its performance relative to peers [4] - Investors are advised to avoid underperforming stocks and focus on those that are outperforming their respective industries or benchmarks [5] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Stocks that have shown better performance than the S&P 500 over the last 1 to 3 months and have solid fundamentals are considered for investment [6] Company Profiles - **Western Digital Corporation (WDC)**: Market cap of $23.4 billion, expected EPS growth of 2,465% year-over-year for fiscal 2025, with a trailing four-quarter earnings surprise of approximately 7.3% [11][12] - **Flowserve Corporation (FLS)**: Market cap not specified, expected EPS growth rate of 14.2% over three to five years, with a 22.1% year-over-year growth estimate for 2025 [13][14] - **OPENLANE, Inc. (KAR)**: Market cap of $2.7 billion, expected EPS growth of 17.7% year-over-year for 2025, shares up 44% in a year [14][15] - **AngloGold Ashanti plc (AU)**: Market cap of $21.8 billion, expected EPS growth of 125.8% year-over-year for 2025, shares up 89% in a year [16] - **Jabil Inc. (JBL)**: Market cap not specified, expected EPS growth rate of 16.6% over three to five years, with a 10.6% year-over-year growth estimate for 2025 [17][18]

Core Insights - The rapid development of artificial intelligence (AI) technology is leading to unprecedented growth in global data, transforming data from a "sleeping resource" into a core production factor [1] - Storage centers are becoming essential infrastructure to support this transformation, impacting data storage, computing power, efficiency, and security in the AI era [1] Group 1: Data Storage Evolution - Data storage has transitioned from a traditional "data container" to a strategic foundation for high-quality digital economic development, acting as a core engine to activate data value and cultivate new productive forces [2] - By the end of 2024, the total storage capacity in China is expected to reach 1580 EB, with advanced storage accounting for 28% [2] - Despite the growth, challenges remain, including underutilization of storage, shortcomings in core chips/software/media, and the need for improved synergy between storage and computing [2] Group 2: Infrastructure Development - The Ministry of Industry and Information Technology and other departments have issued a plan to develop a unified system of computing power, storage, and operational capacity, highlighting the importance of storage in national infrastructure [2] - Storage centers are being established in key locations such as Guangdong, Chongqing, Guizhou, and Langfang, which could serve as provincial backup disaster recovery centers or industry-specific data repositories [3] Group 3: Technological Advancements - The integration of AI and storage is reshaping the technological boundaries of data storage, with a significant shift from traditional mechanical hard drives to advanced storage media [3] - Currently, over 80% of data in China is still stored on mechanical hard drives, with the industry largely dominated by foreign companies [3] - The demand for "AI storage" is increasing, driven by the need for high-frequency read/write capabilities and efficient data management in AI training [4] Group 4: Efficiency and Collaboration - Enhancing storage technology can significantly improve training efficiency, potentially doubling the efficiency of computing clusters from 30% to 60% [5] - A robust storage infrastructure is essential for unlocking data value, requiring deep collaboration among policy, technology, and industry sectors [5]