Seagate shares are up 20% on Thursday: explore why

Shares of Seagate Technology Holdings plc (NASDAQ: STX) are up 20% on Thursday after the global data storage company reported market-beating results for its fiscal second-quarter late last night.

Important points in Seagate’s Q2 earnings report

At $501 million, Seagate said its net income came in nearly 80% higher than the same quarter last year. On an adjusted basis, it earned $2.41 per share. The California-headquartered firm generated $3.12 billion in revenue – an increase from $2.62 billion last year.

In comparison, analysts had forecast $2.36 of adjusted EPS on $3.11 billion in revenue. Seagate declared 70 cents a share of quarterly cash dividend on Thursday. In the earnings press release, CEO Dave Mosley said:

Guidance for the fiscal third quarter

For the current quarter, Seagate forecasts up to $2.20 of adjusted per-share earnings on $2.75 billion to $3.05 billion in revenue versus experts at $2.03 in adjusted EPS on $2.89 billion in revenue. CEO Mosley added:

STX closed 2021 with an 80% gain. Only days earlier, Seagate added Yolanda Lee Conyers to its board of directors. She has formerly worked at notable companies like Lenovo and Dell.