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How Seagate, Western Digital, and NetApp Are Standing up to Analyst Estimates

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Seagate’s fiscal 2Q17 results

Seagate (STX) announced its fiscal 2Q17 results in January 2017 and reported revenue of $2.9 billion, with a gross margin of 30.8% and net income of $297 million. Its non-GAAP (generally accepted accounting principles) EPS (earnings per share) came in at $1.38 in fiscal 2Q17.

Analysts had estimated that Seagate would post revenues of $2.8 billion for the quarter, which ended December 31. Its EPS (earnings per share) were estimated at $1.07, with a high estimate of $1.25 and a low estimate of $0.98.

Seagate’s revenue fell 3% YoY (year-over-year) in fiscal 2Q17, but analysts expect Seagate’s revenue to rise 4.5% YoY to ~$2.7 billion in fiscal 3Q17.

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WDC revenue rose 47.4% in fiscal 2Q17

Western Digital’s (WDC) reported revenue for fiscal 2Q17 was $4.9 billion, as compared to $3.3 billion in fiscal 2Q16. That represents a rise of 47.4% YoY, primarily driven by its acquisition of SanDisk. WDC’s EPS (earnings per share) for the quarter came in at $2.30.

For fiscal 2Q17 (ended December 31, 2016), analysts were estimating that Western Digital would post revenues of $4.76 billion, with a low estimate of $4.74 billion and a high estimate of $4.87 billion. Its EPS had been estimated at $2.13, with a high of $2.27 and a low of $2.09.

Analysts now expect WDC’s revenue to rise 61.8% YoY in fiscal 3Q17.

What did analysts expect in fiscal 3Q17 for NetApp?

NetApp (NTAP) reported revenue of $1.4 billion for fiscal 3Q17, which represents a rise of 1.3% YoY. Its non-GAAP (generally accepted accounting principles) EPS (earnings per share) came in at $0.82, representing a rise of 17.8% YoY in fiscal 3Q17.

Analysts have estimated that NetApp would post revenue of $1.39 billion, with a low estimate of $1.37 billion and a high estimate of $1.41 billion. The company’s EPS expectation is $0.74, with a high estimate of $0.77 and a low estimate of $0.71. Analysts expect NetApp’s revenue to rise 4.2% YoY in fiscal 4Q17.

In the next part, we’ll focus on NetApp’s key revenue drivers going forward.

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