Seagate Reports Its 2Q 2017 Earnings

Seagate Reports Its 2Q 2017 Earnings

Today Seagate Technologies reported on its financial results for the second quarter of 2017. Seagate is continuing to show some overall improvement of its stock and its earnings. Its stock has shown an upward trend in the last three months. For a company that still has major focus on spinning disks in a world where flash will soon take the throne, Seagate is doing pretty well.

Image courtesy of Google Finance

Looking at the numbers, Seagate is reporting a revenue of $2.9 billion up from $2.8 billion last quarter and slightly under the $3 billion (2.986) from this same time last year.  Seagate is reporting a net income of $297 million GAAP up significantly from last quarter’s $167 million. Seagate’s non-GAAP net income was $412 million up from $299 million last quarter. Looking at diluted earnings per share (EPS): GAAP diluted EPS was $1/share and non-GAAP was $1.38/share. The company’s gross margin for this quarter was 30.8% GAAP and 31.8% non-GAAP, up from 28.6% and 29.5%, respectively. Cash flow from operations was $656 million, which is up dramatically from this same time last year when it was only $269 million.

Seagate reports that they shipped 68.2 exabytes this quarter. While not up significantly from last quarter (66.7 exabytes), it is still a ton of storage. Along with shipping huge numbers of storage, the company paid cash dividends of $188 million ($0.63 per share) and repurchased 4.1 million ordinary shares for $147 million.

With this good news from Seagate, perhaps the slump that tech companies have been in will finally start to turn around. Time will tell.