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Investing.com -- Seagate Technology PLC (NASDAQ:STX) shares jumped 5.4% after the data storage company reported fiscal third-quarter earnings that exceeded analyst expectations and provided upbeat guidance for the current quarter.
For the quarter ended March 28, 2025, Seagate posted adjusted earnings per share of $1.90, surpassing the analyst consensus of $1.73. Revenue came in at $2.16 billion, topping estimates of $2.12 billion and marking a 30.5% increase YoY.
The company’s strong performance was driven by healthy demand for mass capacity storage and structural enhancements to its business model. Seagate’s gross margin expanded to 36.2% on a non-GAAP basis, up from 26.1% in the same quarter last year.
Looking ahead, Seagate forecast fourth-quarter adjusted EPS of $2.20 to $2.60, above the $2.05 analyst consensus. The company expects revenue between $2.25 billion and $2.55 billion, with the midpoint of $2.40 billion surpassing the $2.28 billion consensus estimate.
"Seagate delivered another solid quarter of profitable year-on-year growth and margin expansion, elevating our non-GAAP EPS to the top of our guidance range," said Dave Mosley, Seagate’s chief executive officer.
The company generated $259 million in cash flow from operations and $216 million in free cash flow during the quarter. Seagate also declared a quarterly cash dividend of $0.72 per share, payable on July 8, 2025.
Seagate remains focused on executing its HAMR product ramp to support ongoing cloud customer demand, while navigating the current dynamic macroeconomic environment.