Seagate Technology (STX) To Report Earnings Tomorrow: Here Is What To Expect

Jabin Bastian /
2023/04/19 5:07 am EDT
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Data storage manufacturer Seagate (NASDAQ:STX) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Seagate Technology reported revenues of $1.89 billion, down 39.4% year on year, beating analyst revenue expectations by 3.22%. It was a mixed quarter for the company, with a significant improvement in inventory levels but declining revenue.

Is Seagate Technology buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Seagate Technology's revenue to decline 29.5% year on year to $1.97 billion, a deceleration on the 2.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.

Seagate Technology Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Seagate Technology's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Micron Technology's revenues decreased 52.6% year on year, missing analyst estimates by 0.37%. Micron Technology traded flat on the results. Read our full analysis of Micron Technology's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 2.13% over the last month. Seagate Technology is up 4.69% during the same time, and is heading into the earnings with analyst price target of $67.5, compared to share price of $64.97.

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