Free Research Report as Seagate’s Adjusted EPS Surged 7.25%; Revenues Grew 0.69%

LONDON, UK / ACCESSWIRE / February 07, 2018 / Active-Investors.com has just released a free earnings report on Seagate Technology PLC (NASDAQ: STX) (“Seagate”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=STX. Seagate posted its second quarter fiscal 2018 (Q2 FY18) financial results on January 29, 2018. The leading data storage solutions developers' revenue and earnings surpassed market expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Seagate Technology most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

During the second quarter of the fiscal year 2018, Seagate posted net sales of $2.91 billion compared to $2.89 billion in Q2 FY17, reflecting an increase of 0.69%. The modest increase was primarily due to increase in exabytes shipped, offset by price erosion. Revenue numbers beat analysts' estimates of $2.90 billion.

The Company's gross margin was $877.00 million in Q2 FY18 compared to $891.00 million in Q2 FY17, decreasing 1.57% on a y-o-y basis. Seagate's operating expenses amounted to $2.48 billion in the reported quarter compared to $2.52 billion in Q2 FY17, decreasing 1.70% on a y-o-y basis. The Company's operating income was $433.00 million in Q2 FY18 compared to $370.00 million in Q2 FY17, advancing 17.03% on a y-o-y basis.

Seagate's net income was $159.00 million in the reported quarter compared to net income of $297.00 million in Q2 FY17, decreasing 46.46% on a y-o-y basis. The Company's earnings per share (EPS) were $0.55 in Q2 FY18 compared to $1.00 in the second quarter of the previous fiscal year, declining 45.00% on a y-o-y basis. The decline was attributed to the recent enactment of the Tax Cuts and Jobs Act. Seagate's adjusted net income was $431.00 million in Q2 FY18 compared to $412.00 million in Q2 FY17, increasing 4.61% on a y-o-y basis. Adjusted earnings were $1.48 in the reported quarter compared to $1.38 in Q2 FY17, reflecting an increase of 7.25% on a y-o-y basis. Earnings beat analysts' estimates of $1.40.

Segment Details

Seagate has two business segments, namely: (i) HDD, and (ii) Enterprise Systems, Flash, and Other.

Revenues from HDD segment increased 1.85% to $2.70 billion in Q2 FY18 compared to $2.65 billion in Q2 FY17.

Revenues from Enterprise Systems, Flash, and Other segment decreased 11.98% to $213.00 million in Q2 FY18 compared to $242.00 million in Q2 FY17.

On a geographical basis, the US region's net sales were 26.00% of the total in Q2 FY18 compared to 30.00% in Q2 FY17. Europe, Middle-East, and Africa (EMEA)'s sales were 19.00% of total sales in Q2 FY18 compared to 19.00% in Q2 FY17, remaining flat for the year ago same period. Asia/Pacific's net sales were 55.00% of total sales in the reported quarter compared to 56.00% in Q2 FY17.

Cash Matters

Seagate had cash and cash equivalents of $2.56 billion as on December 29, 2017, compared to $1.72 billion as on December 30, 2016. The Company's cash inflow from operating activities was $850.00 million in Q2 FY18 compared to $656.00 million in Q2 FY17. Free cash flow was $773.00 million in the reported quarter compared to $561.00 million in Q2 FY17.

Seagate's Board of Directors declared a regular quarterly cash dividend of $0.63 per share, payable on April 04, 2018, to shareholders of record on March 21, 2018.

Stock Performance Snapshot

February 06, 2018 - At Tuesday's closing bell, Seagate Technology's stock declined 1.95%, ending the trading session at $48.68.

Volume traded for the day: 9.53 million shares, which was above the 3-month average volume of 4.68 million shares.

Stock performance in the last month – up 13.37%; previous three-month period – up 33.99%; past twelve-month period – up 7.13%; and year-to-date – up 16.35%

After yesterday's close, Seagate Technology's market cap was at $14.81 billion.

Price to Earnings (P/E) ratio was at 22.19.

The stock has a dividend yield of 5.18%.

The stock is part of the Technology sector, categorized under the Data Storage Devices industry. This sector was up 2.0% at the end of the session.

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