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How Do Seagate’s Revenue and Profitability Metrics Look?

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Seagate’s EPS is expected to fall almost 4% in fiscal 2Q18

Analysts expect EPS (earnings per share) for Seagate (STX) to fall 3.6% YoY (year-over-year) to $1.33 in fiscal 2Q18 from $1.38 in fiscal 2Q17. In comparison, Seagate’s revenue is expected to fall 1.4% YoY to $2.85 billion in 2Q18. Further, Seagate’s revenue in 3Q18 is expected to fall 3.6% compared to a 5.4% fall in EPS. For 2018, analysts expect revenue to fall 2.4%, while EPS is expected to rise 4.1% to $4.29.

For 2019, analysts expect a rise of 1.4% in EPS, compared to a fall of 1.5% in revenue. Analysts expect revenue to fall 1.4% in fiscal 2020 to $10.2 billion for the firm as well.

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Operating margin for Seagate estimated to rise in fiscal 2018

Analysts expect Seagate’s operating margin to rise from 13.8% in fiscal 2017 to 14.8% in fiscal 2018. Net margin is expected to rise from 7.2% in fiscal 2017 to 9% in fiscal 2018. Operating margin is expected to rise marginally to 15% in fiscal 2019 and fall to 14.8% in fiscal 2020. In comparison, Seagate’s net margin is projected to be 9.5% in fiscal 2019 and 9.9% in fiscal 2020.

Seagate’s net margin has fallen to current levels from 19.2% in fiscal 2012, while the firm’s operating margin at that time stood at 21.7%.

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