Seagate Technology (STX) Q4 Earnings: What To Expect

Data storage manufacturer Seagate (NASDAQ:STX) will be reporting results this Tuesday after market close. Here’s what to expect.

Seagate Technology beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $2.63 billion, up 21.3% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Is Seagate Technology a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Seagate Technology’s revenue to grow 18.3% year on year to $2.75 billion, slowing from the 49.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.84 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Seagate Technology has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.7% on average.

Looking at Seagate Technology’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 56.7%, beating analysts’ expectations by 5%, and Penguin Solutions reported flat revenue, topping estimates by 1.2%. Micron traded up 10.2% following the results while Penguin Solutions was down 13.8%.

Read our full analysis of Micron’s results here and Penguin Solutions’s results here.

There has been positive sentiment among investors in the semiconductors segment, with share prices up 14.3% on average over the last month. Seagate Technology is up 23% during the same time and is heading into earnings with an average analyst price target of $354.82 (compared to the current share price of $346.45).

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