Seagate Technology (STX) To Report Earnings Tomorrow: Here Is What To Expect

Data storage manufacturer Seagate (NASDAQ:STX) will be reporting results tomorrow after the bell. Here’s what to look for.

Seagate Technology met analysts’ revenue expectations last quarter, reporting revenues of $1.89 billion, up 17.7% year on year. It was a very strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts’ EPS 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 45.7% year on year to $2.12 billion, a reversal from the 28.6% decrease it 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 the course heading into earnings. Seagate Technology has missed Wall Street’s revenue estimates five times over the last two years.

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%, and 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 was unchanged.

Read our full analysis of Micron Technology’s results here and SMART’s results here.

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).

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