Why Are Seagate Technology Shares Trading Higher Today?

Seagate Technology Holdings PLC STX reported first-quarter FY22 revenue growth of 34.6% year-on-year to $3.12 billion, surpassing the consensus of $2.73 billion. Non-GAAP EPS was $2.35, up from $0.93 Y/Y.
Mass capacity revenue topped the $2 billion mark for the first time, led by ongoing demand from cloud data center customers and strength in the video and image applications markets.
The non-GAAP gross margin expanded 450 basis points to 31%, while the Non-GAAP operating margin expanded 740 basis points to 20.1%.
The company generated $496 million in operating cash flow, paid cash dividends of $153 million, and repurchased shares worth $425 million. Seagate held $991 million in cash and equivalents.
The board raised the quarterly cash dividend by approximately 5% to $0.70 per share, payable on January 5, to shareholders of record on December 22.
Outlook: STX sees Q2 FY22 revenue of $3.1 billion, plus or minus $150 million above the analyst consensus of $2.52 billion.
It expects a non-GAAP EPS of $2.35, plus or minus $0.15.
Price action: STX shares traded higher by 3.54% at $85.15 in the premarket session on the last check Friday.

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