Research Desk Line-up: Teradata Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 3, 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 reporting of its financial results on July 25, 2017, for the fourth quarter fiscal 2017 (Q4 FY17) and full year 2017 (FY17). The Cupertino, California-based Company's gross margin improved on a year-over-year 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 Teradata Corporation (NYSE: TDC) for due-diligence and potential coverage as the Company reported on July 27, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Teradata 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 TDC. 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

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

Earnings Reviewed

During Q4 FY17, Seagate's revenue fell to $2.41 billion from $2.65 billion recorded at the end of Q4 FY16. Total revenue numbers for the reported quarter lagged behind market consensus expectations of $2.55 billion.

The electronic storage device manufacturer's GAAP net income totaled $114 million, or $0.38 diluted per share, in Q4 FY17 compared to $70 million, or $0.23 per share, in the year ago corresponding quarter. Non-GAAP net income for Q4 FY17 came in at $192 million, or $0.65 diluted per share, versus $207 million, or $0.69 per diluted share, in the previous year's comparable quarter. Wall Street had expected the Company to report non-GAAP net income of $0.99 per diluted share.

For FY17, the Company's revenue was $10.77 billion compared to $11.16 billion in the year ago same period. GAAP net income for FY17 came in at $772 million, or $2.58 per diluted share, compared to $248 million, or $0.82 per diluted share, in FY16. Additionally, non-GAAP diluted net income for FY17 stood at $1.23 billion, or $4.12 per diluted share.

Operating Metrics

For the three months ended on June 30, 2017, the Company reported GAAP gross profit of $666 million, or 27.7% of revenues, compared to $662 million, or 24.9% of revenues, in Q4 FY16. The Company's non-GAAP gross profit improved during Q4 FY17 to $696 million, or 28.9% from $684 million, or 25.8% of revenues, in the prior ago same quarter.

During the reported quarter, non-GAAP operating expenses came in at $422 million versus $443 million in the last year's same quarter. Income from operations increased during Q4 FY17 to $196 million from $103 million in the previous year's comparable quarter. Meanwhile, adjusted EBITDA rose marginally to $392 million during Q4 FY17 from $388 million in Q4 FY16.

Segment Revenue

During Q4 FY17, Hard Disk Drive (HDD) segment's revenues were $2.22 billion compared to $2.46 billion in Q4 FY16. During the quarter, OEM channel contributed 67% of the total segment revenues, followed by Distributors and Retail channels, which contributed 18% and 15%, respectively.

Enterprise system, Flash, and other revenues fell during Q4 FY17 to $186 million from $199 million in the previous year's comparable quarter.

Cash Flow and Balance Sheet

During Q4 FY17, Seagate's net cash provided by operating activities totaled $243 million compared to $269 million in the prior year's same quarter. Capital expenditure during the reported quarter was $104 million compared to $146 million in the previous year's corresponding quarter. Meanwhile, free cash flow increased during the reported quarter to $139 million from $123 million in Q4 FY16.

As of June 30, 2017, the Company had cash and cash equivalents balance of $2.54 billion compared to $1.13 billion, at the close of books on July 01, 2016. The Company recorded long-term debt of $5.02 billion as on June 30, 2017, compared to $4.09 billion at July 01, 2016.

Dividend and Share Repurchases

In its earnings press release, Seagate's Board of Directors declared a quarterly cash dividend of $0.63 per share. The dividend is payable on October 04, 2017, to shareholders of record as of the close of business on September 20, 2017.

During Q4 FY17, the Company returned approximately $400 million to shareholders in the form of dividends and share repurchases. Furthermore, the Company bought back and retired 12.1 million ordinary shares for $460 million during full year FY17.

Stock Performance

On Wednesday, August 02, 2017, the stock closed the trading session at $33.42, slightly rising 0.15% from its previous closing price of $33.37. A total volume of 5.84 million shares have exchanged hands, which was higher than the 3-month average volume of 5.10 million shares. Seagate Technology's stock price advanced 9.04% in the previous twelve months. The stock is trading at a PE ratio of 12.94 and has a dividend yield of 7.54%. The stock currently has a market cap of $9.90 billion.

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SOURCE: Pro-Trader Daily