Seagate Technology Holdings plc Q1 2025 Earnings: A Comprehensive Review
Introduction
On October 22, 2024, Seagate Technology Holdings plc (NASDAQ:STX) held its Q1 2025 earnings conference call. The call was led by Shanye Hudson, Senior Vice President of Investor Relations, and featured Dave Mosley, CEO, and Gianluca Romano, CFO. In this article, we will provide an in-depth analysis of the key takeaways from the call.
September Quarter Results
The company posted its earnings press release and supplemental information on its website, providing a detailed overview of its September quarter results. The financials revealed a mixed bag, with both positive and negative trends emerging.
GAAP and Non-GAAP Measures
During the call, management referred to both GAAP and non-GAAP measures. The non-GAAP figures were reconciled to GAAP figures in the earnings press release and Form 8-K. However, certain non-GAAP outlook measures were not reconciled due to the uncertainty surrounding material items that may impact these measures.
Forward-Looking Statements
As with any earnings call, management’s comments contained forward-looking statements that reflect their current expectations and projections. These statements are subject to change based on various factors, including market conditions and the company’s performance.
Key Takeaways
Several key themes emerged during the call, including:
- Revenue Trends: The company reported revenue of $2.4 billion, down 13% year-over-year.
- Gross Margin: Non-GAAP gross margin came in at 28.1%, up 50 basis points sequentially.
- Operating Expenses: Non-GAAP operating expenses decreased by 12% year-over-year.
- Guidance: Management provided guidance for Q2 2025, expecting revenue to be in the range of $2.3 billion to $2.5 billion.
Analyst Q&A
The call concluded with a Q&A session, where analysts from various firms, including Bank of America, TD Cowen, and Goldman Sachs, posed questions to management. The discussion centered around topics such as the company’s pricing strategy, product roadmap, and competitive landscape.
Final Thoughts
Seagate Technology Holdings plc’s Q1 2025 earnings call provided valuable insights into the company’s performance and future prospects. While the financials presented a mixed picture, management’s commentary offered a nuanced understanding of the underlying trends and challenges. As the company navigates the evolving storage landscape, investors will be closely watching its progress and execution.
Leave a Reply