Seagate Technology Inventory Soars After Profits and Sales Soar, citing ‘rapidly accelerating’ demand for data storage

Shares of Seagate Technology Holdings PLC STX,
Charged 2.6% in premarket trading Wednesday after the data storage company reported fiscal fourth-quarter earnings and revenues rose to multi-year highs and exceeded expectations, delivering an optimistic outlook, citing “rapidly increasing” demand to dates. Net income for the quarter to July 2 rose to $482 million, or $2.07 per share, from $166 million, or 64 cents per share, in the same period a year ago. Excluding one-time items, adjusted earnings per share grew from $1.20 to a nine-year high of $2.00, surpassing the FactSet consensus of $1.87. Revenue rose 19.7% to $3.01 billion, a six-year record, surpassing the FactSet consensus of $2.97 billion. For the fiscal first quarter, Seagate expects adjusted earnings per share of $2.05 to $2.35, above the FactSet consensus of $1.90, and revenue of $2.95 to $3.25 billion, compared to a expected to be $2.99 ​​billion. “Data demand is growing rapidly in the cloud and at the edge, fueling secular growth for mass storage of data,” said Chief Executive Dave Mosley. The stock rose 37.5% through Tuesday, while the S&P 500 SPX,
has increased by 15.1%.