Data storage manufacturer Seagate (NASDAQ:STX) will be reporting results tomorrow before market open. Here's what you need to know.
Last quarter Seagate reported revenues of $3.11 billion, up 18.7% year on year, in line with analyst expectations. It was a decent quarter for the company, with a significant improvement in gross margin but an increase in inventory levels.
Is Seagate buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Seagate's revenue to grow 2.91% year on year to $2.81 billion, improving on the 0.47% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.88 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing one upward and seven downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Seagate'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 5.52% year on year, missing analyst estimates by 4.33%. The stock was down 3.68%. Read our full analysis of Lam Research's results here.
The technology sell-off has been putting pressure on stocks since November and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 12.7% over the last month. Seagate is down 10.4% during the same time, and is heading into the earnings with analyst price target of $103.3, compared to share price of $82.78.
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The author has no position in any of the stocks mentioned.