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10-Q - Seagate Technology Holdings plc (0001137789) (Filer)

Fri, Oct 25, 8:20 PM (11 days ago)

In the quarterly report for Seagate Technology Holdings plc (STX) for the period ending September 27, 2024, the company reported significant financial improvements. Revenue surged to $2,168 million, up from $1,454 million in the same quarter last year, driven by increased demand in cloud and enterprise sectors. Gross margin improved to 33%, aided by favorable product mix and pricing strategies. Net income reached $305 million, a stark contrast to a loss of $184 million a year prior. Cash flow from operations was $95 million, with cash and equivalents totaling $1,239 million, down from $1,358 million, primarily due to $147 million in dividends. The company maintained a strong liquidity position with no borrowings against its $1.5 billion revolving credit facility. However, uncertainties persist, including macroeconomic pressures and potential impacts from geopolitical tensions. The company anticipates continued demand growth, particularly from Generative AI applications, but must navigate challenges in supply chain management and cost controls. Overall, STX's quarterly performance reflects a robust recovery trajectory amidst evolving market dynamics.