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

Max Juang /
2023/10/25 7:18 am EDT

Data storage manufacturer Seagate (NASDAQ:STX) will be reporting results tomorrow before the bell. Here's what to look for.

Last quarter Seagate Technology reported revenues of $1.6 billion, down 39% year on year, missing analyst expectations by 5.01%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

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 26.7% year on year to $1.49 billion, improvement on the 34.7% 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 five times over the last two years.

Looking at Seagate Technology's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Micron Technology's revenues decreased 39.6% year on year, beating analyst estimates by 2.15% and Lam Research reported revenue decline of 31.4% year on year, exceeding estimates by 1.94%. Micron Technology traded down 4.45% on the results, Lam Research was down 3.5%.

Read our full analysis of Micron Technology's results here and Lam Research's results here.

Technology stocks have been hit hard by fears of higher interest rates and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 4.47% over the last month. Seagate Technology is up 8.51% during the same time, and is heading into the earnings with analyst price target of $63.8, compared to share price of $68.82.

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