Seagate Technology (STX) Reports Earnings Tomorrow. What To Expect

Petr Huřťák /
2023/07/25 5:58 am EDT

Data storage manufacturer Seagate (NASDAQ:STX) will be announcing earnings results tomorrow after market hours. Here's what you need to know.

Last quarter Seagate Technology reported revenues of $1.86 billion, down 33.6% year on year, missing analyst expectations by 5.78%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

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This quarter analysts are expecting Seagate Technology's revenue to decline 35.6% year on year to $1.69 billion, a further deceleration on the 12.8% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.25 per share.

Seagate Technology Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Seagate Technology's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Micron Technology's revenues decreased 56.6% year on year, beating analyst estimates by 2.05% and NXP Semiconductors reported revenue decline of 0.39% year on year, exceeding estimates by 2.88%. Micron Technology traded up 3.89% on the results, and NXP Semiconductors traded up 1%. Read our full analysis of Micron Technology's results here and NXP Semiconductors' results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 4.49% over the last month. Seagate Technology is up 0.08% during the same time, and is heading into the earnings with analyst price target of $63.2, compared to share price of $60.6.

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