Seagate Technology Earnings Preview: What to Expect
As the earnings season continues, Seagate Technology (NASDAQ:STX) is set to report its results after the bell tomorrow. The data storage manufacturer has had a strong quarter previously, and investors are eager to see if the company can maintain its momentum.
Previous Quarter’s Performance
In its last quarter, Seagate Technology met analysts’ revenue expectations, reporting $1.89 billion in revenues, up 17.7% year over year. This was a significant improvement, driven by a notable increase in gross margin and an impressive beat of analysts’ EPS estimates.
Current Quarter’s Expectations
This quarter, analysts expect Seagate Technology’s revenue to grow 45.7% year over year to $2.12 billion, a reversal from the 28.6% decrease recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.45 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay on course heading into earnings.
Industry Performance
Looking at Seagate Technology’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Micron Technology delivered year-on-year revenue growth of 93.3%, beating analysts’ expectations by 1.4%, while SMART reported a revenue decline of 1.7%, falling short of estimates by 4.3%. Micron Technology traded up 14.6% following the results, while SMART’s stock price remained unchanged.
Investor Sentiment
Investors in the semiconductors segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Seagate Technology is up 5.8% during the same time and is heading into earnings with an average analyst price target of $113.56, compared to the current share price of $112.
Growth Opportunities
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