Seagate Technology Set to Announce Earnings Results
Seagate Technology, identified by the ticker STX, is poised to reveal its earnings results this Tuesday, with insights anticipated following the market’s closure.
In the previous quarter, Seagate exceeded analysts’ revenue forecasts by a marginal 0.6%, reporting earnings of $2.44 billion—a significant year-on-year growth of 29.5%.
Though the quarter was deemed successful, bolstered by improvements in inventory, revenue projections for the upcoming quarter fell short of analyst expectations.
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This quarter, analysts predict Seagate’s revenues will rise by 17.7% year-over-year, reaching $2.55 billion, a deceleration from the impressive 49.1% growth recorded in the corresponding quarter last year. Adjusted earnings per share are anticipated to be $2.40.
Over the last month, analysts have largely reaffirmed their estimates, indicating a stable outlook for the company as it heads into earnings. However, it is noteworthy that Seagate has missed Wall Street’s revenue estimates twice over the past two years.
Looking beyond Seagate, some peers within the semiconductor sector have already unveiled their Q3 results, offering preliminary insights.
Micron exhibited a robust 46% year-on-year revenue increase, surpassing analyst expectations by 1.8%, while Lam Research recorded a revenue jump of 27.7%, exceeding predictions by 1.6%. Following these results, Micron experienced a decline of 2.9%, whereas Lam Research saw a gain of 4.3%.
Investor sentiment within the semiconductor sector has shown positivity, with share prices rising by an average of 7.6% over the past month.
In this environment, Seagate Technology has seen a moderate increase of 2.8%, entering earnings season with an average analyst price target of $241.10, compared to its current trading price of $235.47.
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