Summary
Seagate Technology Holdings plc (STX) reported strong financial performance for the fiscal year ended June 30, 2022. The company generated revenue of approximately $11.7 billion, a 9% increase year-over-year, driven primarily by growth in mass capacity storage. Gross margin improved to 30% due to favorable product mix and increased mass capacity exabytes shipped, partially offset by higher component and logistics costs. Net income was $1.6 billion, with diluted EPS of $7.36. The company continues to navigate supply chain challenges and inflationary pressures, which impacted its non-HDD business and overall costs. Despite these headwinds, Seagate demonstrated resilience by increasing revenue and improving profitability. The company remains focused on its strategic shift towards mass capacity storage, which is expected to drive future growth. Seagate also returned significant capital to shareholders through share repurchases ($1.8 billion) and dividends ($610 million) during the fiscal year. The company ended the year with substantial liquidity, including $615 million in cash and cash equivalents and an available revolving credit facility of $1.75 billion, positioning it well to manage ongoing macroeconomic uncertainties and pursue future opportunities.
Financial Highlights
56 data points| Revenue | $11.66B |
| Cost of Revenue | $8.19B |
| Gross Profit | $3.47B |
| R&D Expenses | $941.00M |
| SG&A Expenses | $559.00M |
| Operating Expenses | $9.71B |
| Operating Income | $1.96B |
| Interest Expense | $249.00M |
| Net Income | $1.65B |
| EPS (Basic) | $7.50 |
| EPS (Diluted) | $7.36 |
| Shares Outstanding (Basic) | 220.00M |
| Shares Outstanding (Diluted) | 224.00M |
Key Highlights
- 1Revenue increased by 9% to $11.7 billion in fiscal year 2022, primarily driven by growth in mass capacity storage.
- 2Gross margin improved to 30% from 27% in the prior year, attributed to product mix and higher mass capacity exabytes shipped.
- 3Net income reached $1.6 billion, with diluted EPS of $7.36.
- 4The company shipped 631 exabytes of HDD storage capacity, a significant increase from the prior year, with mass capacity storage comprising the majority of this.
- 5Seagate returned $2.4 billion in capital to shareholders through share repurchases ($1.8 billion) and dividends ($610 million).
- 6Despite supply chain disruptions and inflationary pressures, the company maintained effective internal controls over financial reporting.
- 7The company ended the fiscal year with $615 million in cash and cash equivalents and a $1.75 billion revolving credit facility, indicating strong liquidity.