Seagate Technology Holdings PLC (NASDAQ:STX) Fiscal Q2 2025 Earnings Preview

• Seagate Technology Holdings PLC (NASDAQ:STX) is expected to report earnings per share of $1.87 and revenue of $2.32 billion for fiscal Q2 2025.
• The company plans to reduce its substantial debt by $700 million this year, despite a decline in stock value over the past months.
• Key financial metrics include a P/E ratio of 24.34, a price-to-sales ratio of 2.77, and a dividend yield of 3.25%.

Seagate Technology Holdings PLC, listed on NASDAQ:STX, is a key player in the mass-capacity data storage industry. The company is set to release its fiscal second-quarter 2025 earnings on January 21, 2025. Analysts expect earnings per share to be $1.87, with projected revenue of $2.32 billion. This announcement will be followed by a conference call for investors.

Seagate's stock has seen a decline of over 10% since August, yet the company remains a leader in the hard drive storage sector. The increasing demand for cloud storage and advancements in HAMR technology, which enhances storage capacity, position Seagate for future growth. Despite its substantial debt, Seagate plans to reduce it by $700 million this year.

The company's financial metrics provide a deeper insight into its performance. Seagate's price-to-earnings (P/E) ratio is 24.34, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is 2.77, suggesting the market values its sales at this multiple. These ratios help investors understand how the market views Seagate's profitability and sales.

Seagate's enterprise value to sales ratio is 3.38, reflecting its total valuation relative to sales. The enterprise value to operating cash flow ratio is 27.71, showing how the company's valuation compares to its cash flow from operations. These metrics are crucial for assessing Seagate's operational efficiency and strategic direction.

Despite a negative debt-to-equity ratio of -4.37, Seagate maintains a current ratio of 1.14, indicating a slightly higher level of current assets compared to current liabilities. This suggests short-term financial health. Additionally, Seagate offers a sustainable dividend yield of 3.25%, providing a return on investment for shareholders.