Seagate Technology announced its third quarter 2017 financial results. Though in recent quarters Seagate has been on the rise, this earnings report was a bit flat if not down some from the previous results. Seagate’s stock has shown a fairly strong performance over the quarter with a high of 50.51 before a sharp sell off after this quarter’s results were released.
Seagate Technology announced its third quarter 2017 financial results. Though in recent quarters Seagate has been on the rise, this earnings report was a bit flat if not down some from the previous results. Seagate’s stock has shown a fairly strong performance over the quarter with a high of 50.51 before a sharp sell off after this quarter’s results were released.
Looking at the numbers, Seagate is reporting revenue of $2.7 billion, down from $2.9 billion last quarter, however, up slightly (3%) from the previous year’s $2.6 billion. Seagate is reporting a net income of $194 million GAAP, down nearly $100 million form last quarter. Non-GAAP net income is reported as $329 million also down nearly $100 million from last quarter. Looking at diluted earnings per share (EPS): GAAP diluted EPS was of $0.65/share and non-GAAP was $1.10/share. The company’s gross margin for this quarter was 30.5% GAAP and 31.4% non-GAAP, compared to 30.8% and 31.8%, respectively, from the previous quarter. Cash flow from operations was $426 million, down from $656 million last quarter. Seagate is also announcing a cash dividend of $0.63 per share.
Not only were the financial numbers down a bit this quarter, Seagate also shipped less (total capacity) this quarter than in the previous two, 65.5 Exabytes (averaging 1.8TB per drive) this quarter compared to 68.2EB the previous and 66.7EB the quarter before. Though it is a bit of a slump it is an improvement over the same time last year.
Though its numbers are down a bit, along with its stock price at the moment, Seagate is still poised to do well in the coming years. Data is growing almost too fast to keep up with, and the company announcing it is shipping 12TB HDDs in the last three months putting it in a good place to help others keep up with this growth. While it is true that several vendors are looking more and more into flash (somewhere Seagate is gaining ground, for example Seagate is supply Nexenta with SSDs for an upcoming review we'll have), HDDs will still be the dominate technology for storing this data over the next few years.
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