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What’s Impacting Seagate’s Stock Price?

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Seagate’s stock fall

US-based (SPY) storage tech (QQQ) firm Seagate Technology (STX) has seen its stock fall ~21.4% since it announced its fiscal 4Q17 results on July 25, 2017. Seagate closed trading at $31.25 on August 25, 2017, and the firm is currently trading 2.1% above its 52-week low of $30.6 and 39% lower than its 52-week high of $50.96.

Seagate’s stock price fell 16% on July 25, 2017, after the firm reported revenue of $2.4 billion with non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $0.65 in fiscal 4Q17. Seagate’s revenue fell 9.3% YoY (year-over-year) from $2.65 billion, and its EPS fell 5.8% YoY (year-over-year) from $0.69 in fiscal 4Q16.

Its net income fell ~7% YoY from $207 million in fiscal 4Q16 to $192 million in fiscal 4Q17.

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Analysts’ revenue expectations

For fiscal 4Q17 (ended June 2017), analysts expected Seagate to post revenues of $2.6 billion, with EPS of $0.99. Seagate reported revenues 7.7% below the analyst estimate, while its EPS came in 34% below the estimate in fiscal 4Q17.

Seagate beat the analysts’ earnings estimate in three of the past four quarters. It reported EPS of $1.10 in fiscal 3Q17, compared with the average estimate of $1.07, beating the estimate by 2.8%.

Seagate also beat the EPS estimate by 27.8% and 10% in fiscal 2Q17 and fiscal 1Q17, respectively, when it reported EPS of $1.38 and $0.99.

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