Why did STX's EPS surprise in Q4 2024?

The EPS of Seagate Technology (STX) in Q4 2024 was $1.55, with a percentage of EPS surprise of 7.98%. This positive surprise can be attributed to several key factors: |code|Ticker|Name|Date|Percentage of EPS Surprise|Estimate EPS|market_code| |---|---|---|---|---|---|---| |STX|STX.O|Seagate Technology|20240331|-15.79|-0.19|185| |STX|STX.O|Seagate Technology|20240630|300|-0.06|185| |STX|STX.O|Seagate Technology|20240930|13.79|0.29|185| |STX|STX.O|Seagate Technology|20241231|43.84|0.73|185| 1. **Increase in Revenue**: Seagate Technology reported a revenue of $2.3 billion for the quarter, which is an increase from $1.6 billion in the same quarter the previous year. This rise in revenue is attributed to higher demand for high-capacity nearline drives from cloud and enterprise customers. The company's gross margin also improved to 34.9%, up from 23% in the previous year, driven by a favorable product mix and improved pricing. 2. **Strong Performance in Mass Capacity Solutions**: Seagate is witnessing mass capacity demand improvement with nearline cloud demand picking up pace. In the last reported quarter, mass capacity revenues surged 46% year over year to $1.44 billion, owing to stronger global cloud demand. Sequentially, mass capacity revenues were up 22%. The company expects this momentum to continue in fiscal 2025. 3. **Technological Advancements**: Seagate's focus on innovation, such as the introduction of their Mosaic platform's 36TB drives, has enhanced their market competitiveness. The company's investment in quality research and development has enabled it to provide consumers with cutting-edge storage solutions that meet their ever-changing needs. In conclusion, Seagate Technology's EPS surprise in Q4 2024 can be attributed to a combination of increased revenue, strong performance in mass capacity solutions, and technological advancements. These factors have collectively contributed to the company's financial success and resilience in the data storage industry.