Seagate Misses Q3 Consensus Due To Macro Headwinds On Video and Image Applications; Bets On Cloud - Seagate Tech Hldgs (NASDAQ:STX)

Seagate Technology Holdings PLC STX reported third-quarter FY22 revenue growth of 2.6% year-on-year to $2.80 billion missing the consensus of $2.81 billion.
The non-GAAP gross margin expanded 180 bps to 29.2%. The non-GAAP operating margin expanded 140 bps to 16.8%.
Non-GAAP EPS of $1.81 missed the consensus of $1.89.
Seagate generated $460 million in operating cash flow and held $1.1 billion in cash and equivalents.
Dividend: The board declared a quarterly cash dividend of $0.70 per share.
CEO Dave Mosley said, "Seagate's March quarter financial results were consistent with our revised outlook, with record nearline product revenue driven by cloud customers partially offsetting multiple macro related headwinds that impacted other end markets, particularly video and image applications, and pressured profitability."
"In the March quarter, we began the volume ramp of our 20-plus terabyte products, which, combined with continued healthy cloud demand, support our outlook for double-digit fiscal year revenue growth."
Q4 Outlook: Seagate sees revenue of $2.65 billion - $2.95 billion versus the consensus of $2.91 billion.
Seagate sees non-GAAP EPS of $1.70 - $2.10 versus the consensus of $2.05.
Price Action: STX shares traded higher by 4.77% at $83.02 on the last check Wednesday.