The 10-second takeaway
For the quarter ended June 29 (Q4), Seagate Technology met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins improved across the board.
Seagate Technology logged revenue of $4.48 billion. The 15 analysts polled by S&P Capital IQ foresaw revenue of $4.55 billion on the same basis. GAAP reported sales were 57% higher than the prior-year quarter's $2.86 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.41. The 19 earnings estimates compiled by S&P Capital IQ averaged $2.53 per share. GAAP EPS of $2.37 for Q4 were much higher than the prior-year quarter's $0.26 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.1%, 1,380 basis points better than the prior-year quarter. Operating margin was 23.6%, 1,680 basis points better than the prior-year quarter. Net margin was 22.6%, 1,840 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.51 billion. On the bottom line, the average EPS estimate is $2.25.
Next year's average estimate for revenue is $17.19 billion. The average EPS estimate is $7.85.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,151 members out of 1,251 rating the stock outperform, and 100 members rating it underperform. Among 352 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 327 give Seagate Technology a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Seagate Technology is hold, with an average price target of $31.03.
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