What To Expect From Seagate Technology’s (STX) Q1 Earnings

Jack Winthrop /
2022/10/25 2:59 am EDT

Data storage manufacturer Seagate (NASDAQ:STX) will be reporting results tomorrow before market hours. Here's what investors should know.

Last quarter Seagate Technology reported revenues of $2.62 billion, down 12.7% year on year, missing analyst expectations by 5.72%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.

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 32.3% year on year to $2.10 billion, a deceleration on the 34.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 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 Q1 earnings results, giving us a hint of what we can expect. Lam Research reported revenues up 17.8% year on year, exceeding estimates by 3.36%. Lam Research was up 2.37%. Read our full analysis of Lam Research's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.64% over the last month. Seagate Technology is up 1.73% during the same time, and is heading into the earnings with analyst price target of $70.40, compared to share price of $56.35.

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