Research Desk Line-up: Western Digital Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Seagate Technology PLC (NASDAQ: STX) ("Seagate"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=STX, following the Company's announcement of its financial results on October 23, 2017, for the first quarter fiscal 2018. The manufacturers of hard disk drives reported that operating income increased 15.3% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Data Storage Devices industry. Pro-TD has currently selected Western Digital Corporation (NASDAQ: WDC) for due-diligence and potential coverage as the Company reported on October 26, 2017, its financial results for Q1 FY18 which ended on September 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Western Digital when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on STX; also brushing on WDC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=STX

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Earnings Reviewed

For three months ended September 29, 2017, Seagate's revenue decreased 5.8% to $2.63 billion from $2.80 billion in Q1 FY17. Revenue surpassed analysts' expectations of $2.53 billion.

During Q1 FY18, the Company's gross profit decreased 8.1% to $736 million from $801 million in the same period last year. For the reported quarter, the Company's gross margin decreased 60 basis points to 28% of revenue from 28.6% of revenue in Q1 FY17. For the reported quarter, the Company's adjusted gross margin decreased 50 basis points to 29% of revenue from 29.5% of revenue in Q1 FY17.

During Q1 FY18, Seagate's earnings before interest, tax, depreciation, and amortization (EBITDA) decreased 4.5% to $403 million from $422 million in the same period last year. For the reported quarter, the Company's EBITDA margin decreased 30 basis points to 15.3% of revenue from 15.0% of revenue in Q1 FY17. During Q1 FY18, the Company's adjusted EBITDA decreased 6.9% to $466 million from $501 million in the same period last year. For the reported quarter, Seagate's adjusted EBITDA margin decreased 70 basis points to 17.2% of revenue from 17.9% of revenue in Q1 FY17.

For the reported quarter, Seagate's marketing and administrative expenses decreased 6.4% to $145 million from $155 million in Q1 FY17. During Q1 FY18, the Company's amortization expenses decreased 21.4% to $22 million from $28 million in the same period last year. For the reported quarter, Seagate's total operating expenses decreased 7.7% to $2.38 billion from $2.58 billion in Q1 FY17.

During Q1 FY18, Seagate's operating income increased 15.3% to $255 million from $221 million in the same period last year. For the reported quarter, the Company's operating margin increased 170 basis points to 9.6% of revenue from 7.9% of revenue in Q1 FY17.

For the reported quarter, Seagate's net income increased 8.3% to $181 million on a y-o-y basis from $167 million in Q1 FY17. During Q1 FY18, the Company's adjusted net income decreased 6.6% to $279 million from $299 million in Q1 FY17. During Q1 FY18, Seagate's diluted EPS increased 12.7% to $0.62 on a y-o-y basis from $0.55 in the same period last year. During Q1 FY18, the Company's adjusted diluted EPS decreased 3% to $0.96 from $0.99 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $0.86.

Balance Sheet

As on September 29, 2017, Seagate's cash and cash equivalents decreased 10% to $2.29 billion from $2.54 billion on June 30, 2017.

During Q1 FY18, the Company's net accounts receivables increased 0.8% to $1.21 billion from $1.20 billion in Q4 FY17. For the reported quarter, Seagate's inventories increased 3.2% to $1.01 billion from $982 million in the fourth quarter of 2017.

During Q1 FY18, the Company's total assets decreased 3.3% to $8.96 billion from $9.27 billion in Q4 FY17. During Q1 FY18, Seagate's accounts payable decreased 5.3% to $1.54 billion from $1.63 billion in Q4 FY17.

For the reported quarter, the Company's long-term debt decreased 0.37% to $5.00 billion from $5.02 billion in Q4 FY17.

During Q1 FY18, Seagate's cash provided by operating activities decreased 59.8% to $237 million from $591 million in the same period last year. During Q1 FY18, Seagate's free cash flow decreased to $113 million from $451 million in the same period last year.

During Q1 FY18, the Company's Board of Directors approved quarterly dividend of $0.63 payable on January 03, 2018, to shareholders of record as of the close of business on December 20, 2017.

Outlook

For Q2 FY18, Seagate expects revenue growth to be in the range of 3% to 5% on a sequential basis and estimates gross margin to be in the range of 29% to 33% of revenue.

Stock Performance

On Monday, October 30, 2017, the stock closed the trading session at $36.68, marginally slipping 0.60% from its previous closing price of $36.90. A total volume of 5.86 million shares have exchanged hands, which was higher than the 3-month average volume of 5.43 million shares. Seagate Technology's stock price surged 10.58% in the last one month, 9.92% in the past three months, and 7.41% in the previous twelve months. The stock is trading at a PE ratio of 13.87 and has a dividend yield of 6.87%. The stock currently has a market cap of $10.92 billion.

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