Seagate Technology Beats Up on Analysts Yet Again
Seagate Technology (NAS: STX) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 30 (Q2), Seagate Technology beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share increased significantly.
Margins improved across the board.
Seagate Technology reported revenue of $3.20 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $3.16 billion. Sales were 18% higher than the prior-year quarter's $2.72 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.32. The 18 earnings estimates compiled by S&P Capital IQ forecast $1.08 per share on the same basis. GAAP EPS of $1.28 for Q2 were 313% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 1,210 basis points better than the prior-year quarter. Operating margin was 19.0%, 1,120 basis points better than the prior-year quarter. Net margin was 17.6%, 1,210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.33 billion. On the bottom line, the average EPS estimate is $1.85.
Next year's average estimate for revenue is $14.87 billion. The average EPS estimate is $4.90.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,069 members out of 1,157 rating the stock outperform, and 89 members rating it underperform. Among 368 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 352 give Seagate Technology a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Seagate Technology is outperform, with an average price target of $21.53.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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