Seagate (NASDAQ:STX), a leading data storage manufacturer, will release its earnings results tomorrow afternoon. In the previous quarter, Seagate reported revenues of $1.56 billion, a 17.6% decrease compared to the previous year, in line with analyst predictions. The company experienced a strong quarter, with improved gross margins and exceeding analysts’ EPS estimates.
Looking ahead to the upcoming earnings report, analysts expect Seagate’s revenue to decline by 10.7% year on year to $1.66 billion, showing improvement from the significant revenue decrease recorded in the same quarter the previous year. Adjusted earnings are projected to be $0.26 per share.
Despite some volatility in the early months of 2024, most analysts have maintained their estimates for Seagate over the past month, indicating a steady expectation for the company’s performance. However, Seagate Technology has missed Wall Street revenue estimates six times in the last two years. By examining how Seagate’s peers in the semiconductor industry have performed in their recent earnings reports, investors can gain insights into what to expect.
The stock market has been volatile in recent months due to concerns around rate cuts and mixed inflation data affecting investor sentiment. While some semiconductor stocks have weathered these challenges better than others, Seagate Technology has seen a decline of 7.7% in its share price over the last month. Analysts have set a price target of $92 for Seagate, compared to its current share price of $81.4.
In summary, while some semiconductor stocks have been affected by market volatility and inflationary pressures, Seagate Technology has shown resilience despite experiencing declining revenues and profitability challenges over the past few years.
With this background information on hand,
Seagate (NASDAQ:STX) is expected to announce its earnings results tomorrow afternoon.
During the previous quarter,
Seagate reported revenues of $1.56 billion, which was a 17.6% decrease compared to the same period last year.
This was aligned with analyst predictions but did not match up with expectations for improved gross margins or meeting EPS targets.
