Can Seagate Technology Public Meet These Numbers?

Seagate Technology Public (Nasdaq: STX  ) is expected to report Q4 earnings on July 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Seagate Technology Public's revenues will wane -23.7% and EPS will wither -50.6%.

The average estimate for revenue is $3.42 billion. On the bottom line, the average EPS estimate is $1.19.

Revenue details
Last quarter, Seagate Technology Public chalked up revenue of $3.53 billion. GAAP reported sales were 21% lower than the prior-year quarter's $4.45 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.26. GAAP EPS of $1.13 for Q3 were 54% lower than the prior-year quarter's $2.48 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 26.9%, 1,000 basis points worse than the prior-year quarter. Operating margin was 13.2%, much worse than the prior-year quarter. Net margin was 11.8%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $14.35 billion. The average EPS estimate is $5.30.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,198 members out of 1,301 rating the stock outperform, and 103 members rating it underperform. Among 387 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 367 give Seagate Technology Public a green thumbs-up, and 20 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Seagate Technology Public is hold, with an average price target of $34.88.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On July 22, 2013, at 8:29 AM, gargabe wrote:

    The report of June 28,2012 was the peak of revenue and profit for Seagate due to the one time flood that impaired competition from Western Digital. Record revenue of 4.482 Billion and net Income of over 1 Billion were posted by Seagate. Anyone following this industry knew it would be impossible to repeat this performance in the 4th quarter of 2013.

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