Seagate Technology Holdings plc (NASDAQ: STX) (the “Company” or “Seagate”), a leading innovator of mass-capacity data storage, today reported financial results for its fiscal fourth quarter and fiscal year ended June 28, 2024. It announced revenue of $1.89 billion (£1.48bn) for the fourth quarter of this fiscal year, and $6.55bn (£5.13bn) for 2024.
During the fiscal fourth quarter the Company generated $434 million (£340.5m) in cash flow from operations, $380 million in free cash flow, and returned $147m (£115.35m) of capital to shareholders through its quarterly dividend. Additionally, the Company sold the System-on-Chip Operations for $600 million during the fiscal fourth quarter, which included cash proceeds of $560m (£439.44m).
The remaining $40m (£31.38m) is expected to be received by the end of fiscal year 2026. Of the $560m cash proceeds, $326m (£255.81m) was recorded as an investing inflow and $226 million, net of transaction costs, was recorded in both cash flow from operations and in free cash flow.
For fiscal year 2024, the Company generated $918 million in cash flow from operations, $664m (£520.77m) in free cash flow, and paid cash dividends of $585m (£458.81m). As of the end of the fiscal year, cash and cash equivalents totaled approximately $1.4bn (£1.09bn), and there were approximately 210 million ordinary shares issued and outstanding. Additionally, during the fiscal year, the Company issued $1.5bn (£1.17bn) of convertible notes to primarily retire its term loans in the fiscal first quarter.
Seagate CEO Dave Mosley commented: “Seagate delivered robust financial performance for the June quarter amid an improving cloud demand environment, capping off a fiscal year of strong execution against our financial goals. Q4 revenue grew 18% year-over-year, non-GAAP gross margin expanded to nearly 31%, and non-GAAP EPS exceeded the high end of our guidance range.
“In fiscal 2025, we are remaining focused on driving profitability and maintaining supply discipline while continuing to execute our mass capacity product roadmap, anchored by our HAMR technology. Our data storage solutions offer our cloud and enterprise customers with cost, power and space advantages that support their investments in critical AI and other data-driven initiatives.”
Quarterly Cash Dividend
The Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of $0.70 per share, which will be payable on October 7, 2024 to shareholders of record as of the close of business on September 23, 2024. The payment of any future quarterly dividends will be at the discretion of the Board and will be dependent upon Seagate’s financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board.
Business Outlook
The business outlook for the fiscal first quarter 2025 is based on Seagate’s current assumptions and expectations; actual results may differ materially as a result of, among other things, the important factors discussed in the Cautionary Note Regarding Forward-Looking Statements section of this release.
The Company is providing the following guidance for its fiscal first quarter 2025:
- Revenue of $2.10bn (£1.64bn), plus or minus $150m (£117.64m)
- Non-GAAP diluted EPS of $1.40, plus or minus $0.20
Guidance regarding non-GAAP diluted EPS excludes known pre-tax charges related to estimated share-based compensation expenses of $0.16 per share.
Q4 2024 Highlights
- Revenue of $1.89 billion
- GAAP diluted earnings per share (EPS) of $2.39; non-GAAP diluted EPS of $1.05
- Cash flow from operations of $434 million and free cash flow of $380 million
- Declared cash dividend of $0.70 per share
Fiscal Year 2024 Highlights
- Revenue of $6.55 billion
- GAAP diluted EPS of $1.58; non-GAAP diluted EPS of $1.29
- Cash flow from operations of $918 million and free cash flow of $664 million
- Returned $585 million to shareholders through dividends
Seagate has issued a Supplemental Financial Information document, which is available on Seagate’s Investor Relations website at investors.seagate.com.
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