Seagate Technology (STX) Q2 Earnings: What To Expect

Adam Hejl /
2023/01/24 4:15 am EST

Data storage manufacturer Seagate (NASDAQ:STX) will be reporting earnings tomorrow after market close. Here's what to look for.

Last quarter Seagate Technology reported revenues of $2.03 billion, down 34.6% year on year, missing analyst expectations by 3.36%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.

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This quarter analysts are expecting Seagate Technology's revenue to decline 41.4% year on year to $1.82 billion, a significant deceleration compared to the 18.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

Seagate Technology Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing two upward and three downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

With Seagate being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for semiconductor stocks, but there has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 17.5% over the last month. Seagate Technology is up 21.9% during the same time, and is heading into the earnings with analyst price target of $60.50, compared to share price of $63.49.

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The author has no position in any of the stocks mentioned.