Seagate (NASDAQ:STX) is set to announce its earnings results tomorrow afternoon. In the previous quarter, the company reported revenues of $1.56 billion, a 17.6% decrease compared to the previous year, in line with analyst predictions. However, Seagate experienced a strong quarter, with improved gross margins and exceeding analysts’ EPS estimates.
Heading into 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 this, most analysts have maintained their estimates for Seagate over the past month, indicating a steady expectation for the company’s performance. Seagate Technology has missed Wall Street revenue estimates six times in the last two years. By looking at 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 early 2024, with 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 the current share price of $81.4.
In conclusion, investors should closely monitor Seagate’s upcoming earnings report as it will provide insights into how well the company has performed over the past quarter and whether it is on track to meet analyst expectations moving forward
