Seagate Technology Public Hits Estimates, But GAAP Results Lag Last Year's

Seagate Technology Public (Nasdaq: STX  ) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 28 (Q4), Seagate Technology Public met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
Seagate Technology Public booked revenue of $3.43 billion. The 20 analysts polled by S&P Capital IQ expected revenue of $3.43 billion on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $4.48 billion.

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

EPS details
EPS came in at $1.20. The 24 earnings estimates compiled by S&P Capital IQ predicted $1.19 per share. Non-GAAP EPS of $1.20 for Q4 were 50% lower than the prior-year quarter's $2.41 per share. GAAP EPS of $0.94 for Q4 were 60% lower than the prior-year quarter's $2.37 per share.

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

Margin details
For the quarter, gross margin was 27.4%, 570 basis points worse than the prior-year quarter. Operating margin was 13.1%, much worse than the prior-year quarter. Net margin was 10.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $3.55 billion. On the bottom line, the average EPS estimate is $1.31.

Next year's average estimate for revenue is $14.05 billion. The average EPS estimate is $5.40.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,191 members out of 1,294 rating the stock outperform, and 103 members rating it underperform. Among 377 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 358 give Seagate Technology Public a green thumbs-up, and 19 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 $41.11.

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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 24, 2013, at 5:33 PM, gargabe wrote:

    If there was another flood that gave STX an extra Billion in revenue and over 500 million in profit then you probably had results in line with 4th quarter 2012. This flood impaired WDC to compete since flooded factories are difficult to operate.

    What garbage reporting. Are you short?

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