Data storage manufacturer Seagate (NASDAQ:STX) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.
Seagate Technology beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.17 billion, up 49.1% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Seagate Technology a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Seagate Technology’s revenue to grow 49.1% year on year to $2.32 billion, a reversal from the 17.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.88 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Seagate Technology has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Seagate Technology’s peers in the semiconductors segment, only Micron has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 84.3%. The stock was down 16% on the results.
Read our full analysis of Micron’s earnings results here.There has been positive sentiment among investors in the semiconductors segment, with share prices up 4.8% on average over the last month. Seagate Technology is up 10.5% during the same time and is heading into earnings with an average analyst price target of $113.49 (compared to the current share price of $97.80).
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