Seagate satisfies Q2 earnings targets

Seagate reported second quarter financial results on Monday that beat market expectations. The hard-disk drive storage provider reported Q2 revenue of $2.72 billion.

Seagate reported second quarter financial results on Monday that beat market expectations. The hard-disk drive storage provider reported Q2 net income of $384 million, or $1.34 per share, on revenue of $2.72 billion. Non-GAAP earnings for the quarter were $1.41 a share. A year ago, Seagate reported Q2 revenue of $2.91 billion.

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Wall Street was expecting Seagate to report non-GAAP earnings of $1.28 a share on revenue of $2.72 billion. Shares of Seagate were up nearly four percent in after-market trading.

Seagate said Q2 revenue for its hard-disk drive (HDD) portfolio was $2.49 billion, down from $2.7 billion the previous year. The bulk of HDD sales went to OEMs. Revenue from Seagate's enterprise systems, flash, and other category was $225 million.

In prepared remarks, Seagate chief executive Dave Mosley noted a "challenging demand environment" during the quarter, but that the company executed well considering.

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"While there are market and geo-political uncertainties impacting the storage industry, our belief in the long-term growth of data creation and storage demand remains unchanged," Mosley said. "By delivering competitive cost-effective mass storage solutions, Seagate enables the Data Age digital transformations for businesses across many industries."

Looking ahead, analysts expect Seagate to report third quarter earnings of $1.05 per share on revenue of $2.48 billion.