Seagate also reported a gross margin of 28.9% on a net income of $357 million for the quarter.
The company did not give guidance for the fiscal fourth quarter. However, the consensus estimates for the period are $1.07 in EPS and $3.42 in revenue.
The board of directors approved a quarterly cash dividend of $0.54 per share, which will be payable on May 15, to shareholders of record as of the close of business on May 1. The dividend yield is around 4%, with a payout ratio of 45%.
During the third quarter, the Seagate paid cash dividends of $176 million and repurchased approximately 12 million ordinary shares for $706 million. So far this year, the company has returned about $1.4 billion to shareholders in dividend and stock redemptions. Cash and cash equivalents totaled approximately $2.6 billion at the end of the quarter.
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Steve Luczo, chairman and CEO of Seagate, said:
In light of dynamic market conditions this quarter we are quite satisfied with our operational performance and ability to return value to shareholders. Near-term macro uncertainty is affecting certain areas of our addressable market however we remain optimistic that market demand for exabytes of storage will continue to increase over the long-term. Looking ahead, we are focused on aligning our storage technology portfolio effectively to capitalize on market growth opportunities, demonstrating operating profitability and returning value to shareholders.
Shares of Seagate closed Thursday down 1.3% at $55.96. Following the release of the earnings report, shares were relatively flat at $55.90 but have traded up as high as 0.6% to $56.30 in premarket trading. The stock has a consensus analyst price target of $63.95 and a 52-week trading range of $48.49 to $69.40.
Seagate has a market cap of $18 billion, and it trades at 11.7 times fiscal 2015 estimated earnings.
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