Seagate Technology Holdings plc (STX) Q3 2024: Stx

Executive Summary

In Q3 2024, Seagate Technology Holdings (STX) reported a revenue of $1.66 billion, marking a 6% quarter-over-quarter growth amidst an improving demand environment. The reported net income reached $25 million, significantly up from the previous quarter, underlining strong operational discipline and impactful pricing strategies. Management emphasized that their ability to navigate the recovery phase is supported by a robust demand rebound in the nearline cloud market as well as positive trends in the enterprise OEM sector. This performance reflects the benefits of proactive supply chain adjustments and sustained focus on generating cash flow and maintaining profitability.

Key Performance Indicators

Revenue

1.66B

QoQ: 6.43% | YoY:-11.02%

Gross Profit

428.00M

25.86% margin

QoQ: 18.23% | YoY:34.17%

Operating Income

154.00M

QoQ: 24.19% | YoY:7 800.00%

Net Income

25.00M

QoQ: 231.58% | YoY:105.77%

EPS

0.12

QoQ: 232.01% | YoY:105.74%

Revenue Trend

Margin Analysis

Key Insights

**Revenue:** $1.655 billion (up 6.4% QoQ)
**Net Income:** $25 million (up 232% QoQ), reflecting a more than doubling of non-GAAP EPS to $0.33
**Gross Margin:** Improved to 26.1%, a significant increase attributed to pricing actions and favorable product mix
**Operating Income:** Rose to $154 million, with an operating margin of 9.3%
**Free Cash Flow:** Grew to $128 million, showing strong cash generation amid capital expenditures of $60 million. Management noted that future gross margins are expected to trend upwards through continued operational discipline and market recovery, with a target of exceeding 30% by the end of this calendar year.

Financial Highlights

Financial Performance Overview:
- Revenue: $1.655 billion (up 6.4% QoQ)
- Net Income: $25 million (up 232% QoQ), reflecting a more than doubling of non-GAAP EPS to $0.33
- Gross Margin: Improved to 26.1%, a significant increase attributed to pricing actions and favorable product mix
- Operating Income: Rose to $154 million, with an operating margin of 9.3%
- Free Cash Flow: Grew to $128 million, showing strong cash generation amid capital expenditures of $60 million.
Management noted that future gross margins are expected to trend upwards through continued operational discipline and market recovery, with a target of exceeding 30% by the end of this calendar year.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	1.66B	-11.02%	6.43%
Gross Profit	428.00M	34.17%	18.23%
Operating Income	154.00M	7 800.00%	24.19%
Net Income	25.00M	105.77%	231.58%
EPS	0.12	105.74%	232.01%

Key Financial Ratios

currentRatio

0.85

grossProfitMargin

25.9%

operatingProfitMargin

9.31%

netProfitMargin

1.51%

returnOnAssets

0.35%

returnOnEquity

-1.32%

debtEquityRatio

-3

operatingCashFlowPerShare

$0.9

freeCashFlowPerShare

$0.61

dividendPayoutRatio

588%

priceToBookRatio

-10.34

priceEarningsRatio

195.41

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
STX Focus	25.86%	9.31%	-1.32%	195.41%
NTAP	71.70%	22.80%	31.50%	14.49%
DELL	23.10%	6.41%	-37.80%	12.47%
PSTG	72.50%	9.73%	6.13%	39.03%
HPQ	21.50%	6.95%	-46.00%	13.80%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2026	2,629.00	2.43	+39.3%	View
Q3 2025	2,160.00	1.57	+30.5%	View
Q2 2025	2,325.00	1.55	+49.5%	View
Q1 2025	2,168.00	1.41	+49.1%	View
Q4 2024	1,887.00	2.39	+17.8%	View
Q3 2024	1,655.00	0.12	-11.0%	View

Seagate Technology (STX) Q3 2024 Earnings Report

Earnings Highlights

Seagate Technology Holdings plc (STX) Q3 2024 Results: Solid Performance Amidst Recovery

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

Seagate Technology (STX) Q3 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue

Gross Profit

Operating Income

Net Income

EPS

Revenue Trend

Margin Analysis

Key Insights

Financial Highlights

Income Statement

Key Financial Ratios

Net Income vs. Revenue

Expense Breakdown

Management Commentary

Forward Guidance

Competitive Position

Gross Profit Margin

Operating Profit Margin

Return on Equity

P/E Ratio Comparison

Investment Outlook

Key Investment Factors

Growth Potential

Profitability Risk

Financial Position

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Historical Earnings Comparison

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