Seagate tops Q3 earnings targets as high capacity drive sales rebound

The hard-disk drive storage provider reported Q3 revenue of $2.73 billion.

Seagate delivered better-than-expected third quarter financial results on Thursday, marking a slight rebound after a series of mixed quarters due to a slump in enterprise buying. The hard-disk drive storage provider reported Q3 net income of $329 million, or $1.39 per share, on revenue of $2.73 billion. Non-GAAP earnings for the quarter were $1.48 a share. A year ago, Seagate reported Q3 revenue of $2.71 billion.

Wall Street was expecting Seagate to report non-GAAP earnings of $1.32 per a share on revenue of $2.68 billion. Shares of Seagate were down around 2% after hours.

In prepared remarks, Seagate CEO Dave Mosley said the company's performance during the quarter was driven by record sales of Seagate's high capacity nearline drives.

"As the datasphere continues to grow in scale and complexity, our innovative technology, flexible product roadmap and mass data expertise make us well positioned to capture significant opportunities in our core HDD business and address customers' emerging needs to move, secure and store data across a more distributed enterprise," Mosley said.

Looking ahead, analysts expect Seagate to report fourth quarter earnings of $1.55 per share on revenue of $2.85 billion. Seagate responded mostly in line with targets, calling for Q4 revenue of $2.85 billion, give or take $150 million, with EPS of $1.60 give or take 15 cents.