Seagate tops Q2 earnings, revenue targets

Seagate chief executive Dave Mosley said the company saw strong customer demand for its mass capacity products.

Seagate reported second quarter financial results on Thursday that beat market expectations. The hard-disk drive storage provider reported Q2 net income of $280 million, or $1.12 per share, on revenue of $2.62 billion. Non-GAAP earnings for the quarter were $1.29 a share. 

Wall Street was expecting Seagate to report non-GAAP earnings of $1.13 a share on revenue of $2.56 billion. Shares of Seagate were down nearly 5% in after-market trading.

In prepared remarks, Seagate chief executive Dave Mosley said the company saw "broad-based improvement across nearly every served market and geography" in the December quarter. Mosley said Seagate also had strong customer demand for its mass capacity products.

"We also achieved our technology milestone by shipping 20-terabyte HAMR drives in calendar 2020, paving the way for Seagate's continued success for years to come," said Mosley. "As demand for data increases in both the cloud and at the edge, Seagate's new Lyve Storage Platform complements our HDD portfolio to help businesses address both the secular demand for mass capacity storage and the increasing complexity of managing data from edge-to-core cloud."

Looking ahead, analysts expect Seagate to report third quarter earnings of $1.26 per share on revenue of $2.63 billion. Seagate responded mostly in line with targets, calling for Q3 revenue of $2.65 billion, give or take $200 million, with EPS of $1.30 give or take 15 cents.