Seagate Technology Holdings PLC (STX) Reports Q1 2024 Earnings
Seagate Technology Holdings PLC (NASDAQ:STX) reported a revenue of $1.45 billion for Q1 2024, a significant decrease compared to $2.035 billion in Q1 2023.
The company recorded a GAAP loss per share of $(0.88) and a non-GAAP loss per share of $(0.22).
Despite the downturn, the company declared a cash dividend of $0.70 per share and generated $127 million in cash flow from operations.
STX's CEO, Dave Mosley, highlighted the company's strong execution on its mass capacity product roadmap and the potential for improved profitability in the future.
Seagate Technology Holdings PLC (NASDAQ:STX) released its earnings report for the first fiscal quarter of 2024 on October 26, 2023. The company reported a revenue of $1.45 billion, a significant decrease from the $2.035 billion reported in the same quarter of the previous year. The company's GAAP loss per share was $(0.88), while the non-GAAP loss per share was $(0.22).
Financial Performance
Despite the downturn in revenue and earnings per share, STX generated $127 million in cash flow from operations and $57 million in free cash flow. The company also declared a cash dividend of $0.70 per share. As of the end of the quarter, cash and cash equivalents totaled $795 million.
Company Commentary
In the earnings report, Dave Mosley, Seagates chief executive officer, stated,
Seagates first quarter results were in line with our revised expectations.?During a longer-than-typical downcycle we?have?prioritized?financial discipline,?positive free cash flow generation?and?execution?on?our?HAMR?product roadmap, which will extend our industry leadership in areal density and improve the total cost of ownership for our customers."
Mosley also noted indications of improving demand fundamentals in certain markets, including a modest uptick in U.S. cloud.
Future Outlook
For the fiscal second quarter of 2024, STX is projecting a revenue of $1.55 billion, plus or minus $150 million, and a non-GAAP loss per share of $(0.10), plus or minus $0.20. The company's future performance will be influenced by various factors, including market demand for its products and its ability to optimize production levels.
Conclusion
While Seagate Technology Holdings PLC (NASDAQ:STX) experienced a downturn in its Q1 2024 earnings, the company's leadership remains confident in its strategic roadmap and the potential for improved profitability in the future. Investors and stakeholders are advised to keep a close watch on the company's performance in the coming quarters.
Explore the complete 8-K earnings release (here) from Seagate Technology Holdings PLC for further details.
This article first appeared on GuruFocus.
