Data storage manufacturer Seagate (NASDAQ: STX) will be reporting earnings this Tuesday afternoon. Here’s what to look for.
Seagate beat analysts’ revenue expectations last quarter, reporting revenues of $2.83 billion, up 21.5% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
Is Seagate a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Seagate’s revenue to grow 36.7% year on year, improving from the 30.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Seagate rarely misses Wall Street’s revenue estimates.
Looking at Seagate’s peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 196%, beating analysts’ expectations by 20.1%, and Texas Instruments reported revenues up 18.6%, topping estimates by 6.6%. Micron traded down 3.8% following the results while Texas Instruments was up 19.6%.
Read our full analysis of Micron’s results here and Texas Instruments’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 50.4% on average over the last month. Seagate is up 61.9% during the same time and is heading into earnings with an average analyst price target of $532.57 (compared to the current share price of $587.05).
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