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Seagate Technology stock surges after profit and revenue beats, citing ‘rapidly accelerating’ data storage demand

Shares in Seagate Technology Holdings PLC
STX,
+1.42%

rose 2.6% in pre-trading on Wednesday after the data storage company reported fourth quarter earnings and revenue that climbed to multi-year highs and exceeded expectations and an bullish outlook, citing the “rapid acceleration” of the market Data demand delivered. Net income for the quarter ended July 2 rose to $ 482 million, or $ 2.07 per share, from $ 166 million, or 64 cents per share, for the same period last year. Excluding one-time items, adjusted earnings per share rose from $ 1.20 to a nine-year high of $ 2.00, beating the FactSet consensus of $ 1.87. Revenue rose 19.7% to 3.01 billion. Seagate expects adjusted earnings per share for the first fiscal quarter to be in the range of $ 2.05 to $ 2.35, above the FactSet consensus of $ 1.90 And expects sales of $ 2.95 billion to $ 3.25 billion versus $ 2.99 billion. “The demand for data in the cloud and at the edge is growing rapidly, which is driving the long-term growth of data storage,” said Chief Executive Dave Mosley. The stock was up 37.5% year-to-date through Tuesday, during the S&P 500
SPX,
+ 1.52%

has increased by 15.1%.

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