Summary
Seagate Technology plc (STX) filed an 8-K on September 18, 2019, to announce an update to its fiscal first quarter of 2020 non-GAAP diluted Earnings Per Share (EPS) guidance. The company revised its guidance upward from a previous range of $0.90 +/- 5% to a new range of $0.99 +/- 5%. This increase is primarily attributed to a change in the estimated useful lives of its capital equipment, specifically within manufacturing operations. The extended useful life, now ranging from three to seven years instead of three to five years, is expected to reduce depreciation expense by approximately $25 million, or $0.09 per diluted share, for the fiscal first quarter of 2020. Management reiterated its fiscal first quarter of 2020 revenue outlook of $2.55 billion +/- 5%. The press release also provided details on non-GAAP diluted EPS exclusions, which include charges related to debt redemption/repurchase, share-based compensation, and amortization of acquired intangible assets. Seagate also announced it would host a financial analyst meeting on September 19, 2019, with a live webcast available for public access.
Key Highlights
- 1Seagate updated its Q1 FY2020 non-GAAP diluted EPS guidance to $0.99 +/- 5%, an increase from the previous guidance of $0.90 +/- 5%.
- 2The EPS increase is primarily due to a change in the estimated useful lives of capital equipment, extending from 3-5 years to 3-7 years.
- 3This change in accounting estimate is expected to reduce depreciation expense by approximately $25 million, or $0.09 per diluted share, in Q1 FY2020.
- 4The company reiterated its Q1 FY2020 revenue outlook of $2.55 billion +/- 5%.
- 5Non-GAAP EPS guidance excludes specific charges including debt redemption/repurchase losses, share-based compensation, and amortization of acquired intangibles.
- 6Seagate announced an upcoming financial analyst meeting scheduled for September 19, 2019, with a live webcast.
- 7The company emphasizes its practice of using its Investor Relations website to announce material information.