What Do Analysts Expect from Seagate’s Fiscal 2Q17 Earnings?



Seagate Technology’s 2Q17 earnings

Let’s look at the analyst earnings estimate and business segments of hardware storage firm Seagate Technology (STX). Seagate (STX), based in the United States (SPY), will be announcing its fiscal 2Q17 results on January 24. Analysts estimate that the company will post revenues of $2.82 billion for the quarter, which ended December 31. They expect a low estimate of $2.7 billion and a high estimate of $2.92 billion.

Earnings per share (or EPS) are estimated at $1.07, with a high estimate of $1.25 and a low estimate of $0.98. If Seagate meets analysts’ revenue estimates of $2.82 billion, it will mean a YoY (year-over-year) decrease of 5.4% compared to fiscal 2Q16.

As you can see in the above chart, Seagate beat the EPS analyst estimate in fiscal 2Q16 by 15.5% with EPS of $0.82. The company also beat EPS estimates in fiscal 4Q16 and fiscal 1Q17 by 15% and 10%, respectively.

However, the company posted EPS of $0.22 in fiscal 3Q16—40.5% lower than analysts’ estimates.

How did Seagate perform in fiscal 1Q17?

Seagate reported revenue of $2.8 billion in fiscal 1Q17 with a gross margin of 29.5%. Earnings per share were $0.99.

Analysts estimated that the firm would post revenues of $2.76 billion for the quarter that ended September 30, 2016, with EPS of $0.9. For fiscal 2016, Seagate reported revenues of $11.2 billion with a net income of $684 million and diluted EPS of $2.26.

Article continues below advertisement

More From Market Realist