Seagate (STX) Q2 Earnings Report Preview: What To Look For
Data storage manufacturer Seagate (NASDAQ:STX) will be reporting earnings this Tuesday after the bell. Here’s what you need to know.
Seagate beat analysts’ revenue expectations last quarter, reporting revenues of $3.11 billion, up 44.1% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates.
Is Seagate a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Seagate’s revenue to grow 43.3% year on year, improving from the 29.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Seagate has a history of exceeding Wall Street’s expectations.
Looking at Seagate’s peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 346%, beating analysts’ expectations by 13.9%, and Intel reported revenues up 25.4%, topping estimates by 11.7%. Intel traded down 12.2% following the results.
Read our full analysis of Micron’s results here and Intel’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). Investors in semiconductors stocks haven’t been spared in this environment as share prices are down 15.4% on average over the last month. Seagate is down 13.3% during the same time and is heading into earnings with an average analyst price target of $1,009 (compared to the current share price of $840).
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