The storage solution provider, Seagate Technology Public Limited Company (STX) is mainly known as one of the largest manufacturers of hard disk drives (HDD) which caters to the needs of individual and small businesses. However, for the past few years the company is focusing on the larger enterprise segment, where technology upgrades and cloud-related investments are on the rise. Moreover, Seagate’s cloud-based applications have generated ample customer interest.
However, increased investment in new and innovative products, sluggish macroeconomic conditions and a flattish price environment, and severe competition from other players in the space has made this sector a very tough one to be in for the short term. Due to this, investors are eagerly awaiting STX’s earnings report in order to set the record straight and to give some guidance on where this company is heading.
This is especially true given the recent earnings estimate revisions for STX as the consensus estimate has been going slightly lower. However, STX does have somewhat decent history when it comes to recent earnings reports as the stock has beaten estimates twice, meets once and misses once in the last four quarters, making for an average surprise of approximately 2%.
Currently, STX has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: STX misses on earnings. Our consensus called for EPS of $1.36, and the company reported EPS of $1.35.
Revenue: Revenues missed. Seagate posted revenues of $3,696 million, compared to our consensus estimate of $3,719 million.
Key Stats: The company witnessed year over year growth in revenue mainly driven by higher demand for its cloud storage products.
Stock Price: Shares are down over 3% in the pre-market session.
Check back later for our full write up on this STX earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment