Seagate Technology exceeds Q1 projections, +1.7% pre-market

|About: Seagate Technology (STX)|By:, SA News Editor

Revenue of $2.8B (-4% Y/Y, $10M above estimates), gross margin at 29.5%, net income of $299M and EPS of $0.99 ($0.20 above estimates).

Operating cash flow of $592M, 3M shares repurchased for $101M and cash, cash equivalents and short-term investments of $1.5B.

Quarterly divided approved – $0.63 per share, payable on January 4, 2017 to shareholders of record on December 21, 2016.

Seagate Technology (NASDAQ:STX) chairman and CEO Steve Luczo: "In response to strong cloud storage customer demand, Seagate delivered record levels of exabyte shipments, and generated strong revenues, margin and cash flow in the September quarter. In addition, as a result of our operating expense management, the company's non-GAAP earnings per share increased by 85% year over year. As the demand for HDD storage continues to benefit from the shift to data driven cloud based architectures, Seagate is in a strong position to grow its businesses, improve margins and continue with its dividend and buyback capital allocation objectives."

Supplemental information

Conference call (outlook forthcoming)

Press release