Seagate Technology PLC (NASDAQ:STX) reported upbeat earnings for its first quarter, while sales missed views. The company also said it expects Q2 adjusted earnings of $0.95 to $1.25 per share on sales of $2.35 billion to $2.75 billion.
The company told investors Friday revenue came in at $2.31 billion, with GAAP operating margin of 10.8%; non-GAAP operating margin of 12.7%
GAAP diluted earnings per share (EPS) were $0.86; non-GAAP diluted EPS was $0.93.
Seagate also revealed cash flow from operations of $297 million and free cash flow of $186 million. The company raised the quarterly cash dividend by 3% to $0.67 per share
Seagate also approved a $3-billion increase to the share repurchase authorization, bringing the available amount to $4.2 billion.
The company is providing the following guidance for its fiscal second quarter 2021: Revenue of $2.55 billion, plus or minus $200 million, and non-GAAP diluted EPS of $1.10, plus or minus $0.15
According to CEO Dave Mosley, "Seagate delivered solid September quarter results supported by strong recovery in the video and image applications market and healthy cloud data center demand, which drove double digit year-over-year revenue growth for our mass capacity storage solutions.
"We see indications for Enterprise demand to improve and we expect this to continue as the broader markets gradually recover, supporting our positive December quarter outlook and reinforcing our revenue expectations for the fiscal year."
The company website says Seagate, crafts the datasphere, helping to maximize humanity’s potential by innovating world-class, precision-engineered data management solutions with a focus on sustainable partnerships."
STX shares dipped $1.52, or 2.9%, to $50.27.
