Seagate Technology Holdings PLC (NASDAQ:STX) shares are trading higher premarket on Wednesday. Yesterday, the company reported second-quarter FY25 revenue of $2.33 billion, beating the consensus of $1.56 billion.
Adjusted gross margin rose to 35.5% from 23.6% a year ago quarter.
Adjusted operating margin escalated to 23.1% from 8.2% in the prior-year quarter. Adjusted EPS of $2.03 beat the consensus of $1.88.
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In Q2, the company generated an operating cash flow of $221 million plus free cash flow of $150 million.
The company returned $148 million to shareholders via its quarterly dividend. As of end of the second quarter, cash and cash equivalents totaled $1.2 billion.
Dividend: The board of directors declared a cash dividend of 72 cents per share. The dividend is payable on April 2, to shareholders of record as of March 19, 2025.
Outlook: Seagate expects third-quarter adjusted EPS of $1.70, against the consensus of $1.71. It also expects revenue of $2.1 billion versus the $2.2 billion estimate.
Seagate is “advancing” the company’s technology roadmap to meet customers’ growing need for AI storage solutions, CEO Dave Mosley said.
”We began ramping HAMR-based Mozaic products to our lead cloud customer in the December quarter and are already sampling in capacities of up to 36 terabytes. Looking ahead, we believe Seagate is in a great position to deliver profitable growth in fiscal 2025,” he added.
Investors can gain exposure to the stock via StockSnips AI-Powered Sentiment US All Cap ETF (NASDAQ:NEWZ) and Affinity World Leaders Equity ETF (BATS:WLDR).
Price Action: STX shares are up 6.67% at $108 premarket at the last check Wednesday.
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