Data storage manufacturer Seagate (NASDAQ: STX) will be announcing earnings results this Tuesday after market close. Here’s what to look for.
Seagate beat analysts’ revenue expectations last quarter, reporting revenues of $3.63 billion, up 48.5% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ 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 57.5% year on year, improving from the 21.3% 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 will stay the course heading into earnings. Seagate has a history of exceeding Wall Street’s expectations.
Looking at Seagate’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Western Digital delivered year-on-year revenue growth of 55.5%, beating analysts’ expectations by 5.2%, and Micron reported revenues up 379%, topping estimates by 6.4%. Western Digital traded down 3.7% following the results while Micron was up 3%.
Read our full analysis of Western Digital’s results here and Micron’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 13.7% on average over the last month. Seagate is down 31.6% during the same time and is heading into earnings with an average analyst price target of $1,117 (compared to the current share price of $630.29).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
