Latest news with #STX
Yahoo
3 days ago
- Business
- Yahoo
BofA Maintains Buy on Seagate Technology Holdings (STX) Stock, Raises PT
On May 28, BofA Securities exhibited a positive stance on Seagate Technology Holdings plc (NASDAQ:STX)'s stock by increasing the price target from $125.00 to $135.00, while maintaining a 'Buy' rating. The analyst demonstrated confidence in numerous aspects of Seagate Technology Holdings plc (NASDAQ:STX)'s business. A technician configuring a network-attached storage drive. These include the roadmap for areal density, capability to balance supply and demand across market cycles because of its customer base having few very large clients, and its cost management capabilities in future downcycles. Furthermore, the firm's analyst mentioned the long-term demand for hard disk drives (HDDs) in data centers and the expectation for elevated margin levels because of a product mix transition towards Heat-Assisted Magnetic Recording (HAMR) technology, which can be achieved without the need for incremental unit capacity investments. Overall, the optimism from BofA Securities on Seagate Technology Holdings plc (NASDAQ:STX)'s stock is mainly backed by the secular demand trends from Cloud services. The company's strong emphasis on innovation, mainly in HAMR technology, can help strengthen its competitive edge. Seagate Technology Holdings plc (NASDAQ:STX) provided new financial targets for the period through FY 2028, which are aided by HAMR technology adoption. Over FY 2025 – FY 2028, it expects revenue to see low-to-mid teens CAGR. Seagate Technology Holdings plc (NASDAQ:STX) provides data storage technology and infrastructure solutions. While we acknowledge the potential of STX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STX and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None.
TECHx
23-05-2025
- Business
- TECHx
Seagate Technology Reveals 2025 Strategy and Outlook
Home » Emerging technologies » Storage » Seagate Technology Reveals 2025 Strategy and Outlook Seagate Technology announced its 2025 Investor and Analyst Event, revealing a strategic plan to drive growth, boost profitability, and build long-term value for customers and shareholders. The company, listed on NASDAQ as STX, reported that technology innovation and artificial intelligence are driving rapid data growth. This trend is fueling demand in the hard drive storage industry. Seagate stated it is well-positioned to meet this demand with its Mozaic portfolio, powered by advanced HAMR (Heat-Assisted Magnetic Recording) technology. According to CEO Dave Mosley, the portfolio addresses key challenges such as cost, scale, and sustainability. Mosley noted that Seagate delivers end-to-end storage solutions from cloud to edge, designed to support customers in a data-driven world. Since its 2021 Investor and Analyst Event, Seagate has: Made structural changes to improve supply and cost efficiency Enhanced product mix and extended demand visibility Mosley emphasized the company's strengthened position, crediting the global team's dedication. He expressed confidence in Seagate's strategy and technology to lead the future of data storage. During the event, Seagate revealed new financial targets through FY2028. These targets are supported by broader adoption of its HAMR technology. In addition, the company announced a $5 billion increase in its share repurchase authorization. The Board of Directors approved this move to reinforce Seagate's focus on capital returns and long-term confidence. The authorization has no time limit. Future repurchases will depend on several factors, including financial performance, cash flow, and capital needs.
Associated Press
21-05-2025
- Business
- Associated Press
STX Group Facilitates a Record Tax Credit Transfer of US$1 Billion
New York, May 21, 2025 (GLOBE NEWSWIRE) -- STX Group, a leading global firm in environmental commodities trading and climate finance, is proud to announce the successful execution of a transferable tax credit transaction surpassing US$1 billion. The deal is believed to be the largest single transfer of investment tax credits (ITCs) completed under the Inflation Reduction Act (IRA) to date, reinforcing STX Group's market leadership in the transferability space. The transaction marks a major milestone in unlocking new investment for U.S. energy infrastructure and affordable clean power. This deal of record volume highlights the maturity and momentum of the transferable credit market and demonstrates STX Group's ability to take a dual role as a trading firm and an advisor for corporates strategizing and executing their energy transition and net zero strategies. The company is able to deliver scale and certainty for both credit buyers and project developers. 'This deal underscores STX Group's position as a premier partner in the rapidly growing climate finance landscape. It solidifies our role as a first mover and a clear leader in the transferable tax credit market,' said Fabian Roobeek, Managing Partner at STX Group in New York. 'It also highlights the confidence that the renewable energy developers and corporate buyers place in our ability to navigate market complexity and close deals at scale.' As buyers seek strategic ways to reduce their tax liability while project developers look to unlock market liquidity, STX Group uses its deep market knowledge and experience to provide tailored solutions and transparent execution in an evolving policy landscape. The IRA's transferability framework, in effect since 2022, enables companies to leverage tax savings while investing in the clean energy transition — creating a new liquidity pathway for developers. STX supports clients on both sides of the market, designing and executing strategies across technologies — combining scale, certainty and protection in a fast-evolving landscape. - ENDS - About STX Group STX Group is a leading global environmental commodity trader and climate solutions provider. For over 25 years, STX teams have continued to be at the forefront of the global transition towards a low-carbon economy. Leveraging our long-standing expertise in accurately pricing pollution and emissions, it helps cultivate trust in market-based solutions to the decarbonized economy. Through STX Group's trading and corporate climate solutions offerings, capital flows to thousands of projects that make the world a greener place, while providing corporations with the certified proof-points of their contributions to environmental progress. With a strong presence in the US, including offices in New York and Houston, STX Group leverages its global reach and deep local expertise to connect participants across the entire environmental commodity value chain. For more information, please visit Attachment Sanna-Maaria Mattila STX Group [email protected]
Yahoo
21-05-2025
- Business
- Yahoo
STX Group Facilitates a Record Tax Credit Transfer of US$1 Billion
New York, May 21, 2025 (GLOBE NEWSWIRE) -- STX Group, a leading global firm in environmental commodities trading and climate finance, is proud to announce the successful execution of a transferable tax credit transaction surpassing US$1 billion. The deal is believed to be the largest single transfer of investment tax credits (ITCs) completed under the Inflation Reduction Act (IRA) to date, reinforcing STX Group's market leadership in the transferability space. The transaction marks a major milestone in unlocking new investment for U.S. energy infrastructure and affordable clean power. This deal of record volume highlights the maturity and momentum of the transferable credit market and demonstrates STX Group's ability to take a dual role as a trading firm and an advisor for corporates strategizing and executing their energy transition and net zero strategies. The company is able to deliver scale and certainty for both credit buyers and project developers. 'This deal underscores STX Group's position as a premier partner in the rapidly growing climate finance landscape. It solidifies our role as a first mover and a clear leader in the transferable tax credit market,' said Fabian Roobeek, Managing Partner at STX Group in New York. 'It also highlights the confidence that the renewable energy developers and corporate buyers place in our ability to navigate market complexity and close deals at scale.' As buyers seek strategic ways to reduce their tax liability while project developers look to unlock market liquidity, STX Group uses its deep market knowledge and experience to provide tailored solutions and transparent execution in an evolving policy landscape. The IRA's transferability framework, in effect since 2022, enables companies to leverage tax savings while investing in the clean energy transition — creating a new liquidity pathway for developers. STX supports clients on both sides of the market, designing and executing strategies across technologies — combining scale, certainty and protection in a fast-evolving landscape. - ENDS - About STX Group STX Group is a leading global environmental commodity trader and climate solutions provider. For over 25 years, STX teams have continued to be at the forefront of the global transition towards a low-carbon economy. Leveraging our long-standing expertise in accurately pricing pollution and emissions, it helps cultivate trust in market-based solutions to the decarbonized economy. Through STX Group's trading and corporate climate solutions offerings, capital flows to thousands of projects that make the world a greener place, while providing corporations with the certified proof-points of their contributions to environmental progress. With a strong presence in the US, including offices in New York and Houston, STX Group leverages its global reach and deep local expertise to connect participants across the entire environmental commodity value chain. For more information, please visit Attachment STX Group Facilitates a Record Tax Credit Transfer of US$1 Billion CONTACT: Sanna-Maaria Mattila STX Group media@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
STX Q1 Earnings Call: Cloud Demand and Technology Transition Drive Seagate's Outperformance
Data storage manufacturer Seagate (NASDAQ:STX) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 30.5% year on year to $2.16 billion. On the other hand, next quarter's revenue guidance of $2.4 billion was less impressive, coming in 0.6% below analysts' estimates. Its non-GAAP profit of $1.90 per share was 9.3% above analysts' consensus estimates. Is now the time to buy STX? Find out in our full research report (it's free). Revenue: $2.16 billion vs analyst estimates of $2.14 billion (30.5% year-on-year growth, 0.9% beat) Adjusted EPS: $1.90 vs analyst estimates of $1.74 (9.3% beat) Adjusted EBITDA: $570 million vs analyst estimates of $559.6 million (26.4% margin, 1.9% beat) Revenue Guidance for Q2 CY2025 is $2.4 billion at the midpoint, below analyst estimates of $2.42 billion Adjusted EPS guidance for Q2 CY2025 is $2.40 at the midpoint, above analyst estimates of $2.05 Operating Margin: 20%, up from 8.6% in the same quarter last year Free Cash Flow Margin: 10%, up from 7.7% in the same quarter last year Inventory Days Outstanding: 96, up from 89 in the previous quarter Market Capitalization: $21.64 billion Seagate's first quarter results were shaped by strong demand for high-capacity storage drives, particularly from global cloud customers, and the company's ongoing focus on profitability and operational leverage. CEO Dave Mosley attributed the year-on-year revenue growth to Seagate's build-to-order supply model and disciplined supply management, which allowed the company to prioritize high-value product segments and navigate recent supply constraints. Mosley emphasized, 'Our supply discipline, the visibility we gain through our build-to-order strategy, and our execution on strategic pricing actions all contribute to sustainable and profitable growth over the long-term.' Looking ahead, management's guidance reflects both opportunities and caution. The company anticipates continued cloud-driven demand and further adoption of its HAMR (Heat-Assisted Magnetic Recording) technology, but also flagged potential risks from new trade tariffs and evolving customer procurement behaviors. CFO Gianluca Romano stated that Seagate expects 'minimal direct impact from tariff policies' in the coming quarter, but noted that the company is monitoring for secondary effects on customer demand. The team reiterated a commitment to improving margins and free cash flow, while remaining agile in response to macroeconomic and policy changes. Seagate's management highlighted a combination of operational improvements, product transitions, and resilient cloud demand as primary factors behind its quarterly performance. The company also discussed ongoing technology shifts and supply-demand dynamics shaping its near-term outlook. Cloud nearline demand surge: Seagate saw significant growth in nearline hard drive shipments to global cloud providers, driven by increased data center investments and AI-related workloads. Management noted that nearline exabyte shipments nearly doubled year-over-year and that this segment now represents the majority of mass capacity volume. HAMR technology ramp: The company's rollout of HAMR-based Mozaic drives is progressing, with multiple cloud customers in qualification stages. Management indicated that HAMR contributed incrementally to quarterly results, with expectations for broader adoption and higher shipment volumes in the second half of the year. Build-to-order model effectiveness: Seagate's adoption of a build-to-order supply chain model improved supply predictability and allowed the company to manage customer allocations during recent supply constraints. This approach has enhanced the company's agility amid industry volatility. Pricing and product mix discipline: Strategic pricing actions and a richer sales mix of high-capacity drives supported the expansion of gross and operating margins. Management highlighted that these factors, along with initial HAMR sales, helped offset declines in legacy product segments. Tariff and supply chain risk management: While management expects minimal direct impact from recently announced tariffs in the next quarter, it is evaluating longer-term strategies such as geographic diversification of manufacturing and supply chains to mitigate potential trade disruptions. Management's outlook centers on demand from large cloud and hyperscale customers, ongoing technology transitions, and the company's ability to adapt to trade policy changes and supply chain risks. Cloud and AI infrastructure demand: Seagate expects continued strength in cloud nearline storage as data center operators expand capacity to support AI and video workloads. The company believes that both hyperscale and smaller edge data centers will drive exabyte demand well into next year. HAMR adoption and product transitions: The successful qualification and ramp of HAMR-based drives are expected to accelerate revenue growth and support margin expansion, as these products offer higher capacities and improved cost efficiency compared to traditional PMR (Perpendicular Magnetic Recording) drives. Tariff and supply chain adaptation: While management anticipates only minor direct impacts from new tariffs in the near term, there is ongoing monitoring for indirect effects on customer procurement. The company is prepared to adjust its manufacturing footprint and renegotiate supply agreements if trade disruptions intensify. Erik Woodring (Morgan Stanley): Asked how Seagate achieved upside despite supply constraints and whether guidance would have changed if announced earlier. Management cited the predictability of its build-to-order model and stated guidance would have remained the same. Asiya Merchant (Citi): Requested details on HAMR drive qualification and contribution to results. Management revealed that HAMR drives contributed incremental volume and that qualifications remain on track for broader adoption in the second half of the year. C.J. Muse (Cantor Fitzgerald): Questioned improvements in demand visibility and pricing dynamics. Management emphasized improved visibility into customer demand into next year and highlighted ongoing pricing discipline in new contracts. Wamsi Mohan (Bank of America): Sought clarification on margin expansion given product mix changes. CFO Gianluca Romano explained that higher cloud nearline volumes and timing of price increases influence margin trends, with the overall strategy focused on consistent improvement. Hadi Orabi (TD Cowen): Asked about the timeline and approach for passing through tariff-related costs if needed. Management explained that cost pass-through would be a last resort, with operational adjustments and customer negotiations preferred to maintain margins. In the coming quarters, the StockStory team will be monitoring (1) the pace and breadth of HAMR drive adoption among major cloud customers, (2) Seagate's ability to maintain supply-demand balance as new data center investments accelerate, and (3) the company's agility in responding to developing trade policy and tariff risks. Progress on technology qualifications and execution of supply chain adaptation will also be important markers for future performance. Seagate Technology currently trades at a forward P/E ratio of 11.4×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. 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