Seagate Technology Public
The 10-second takeaway
For the quarter ended Dec. 28 (Q2), Seagate Technology Public beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased slightly.
Margins shrank across the board.
Seagate Technology Public booked revenue of $3.67 billion. The 20 analysts polled by S&P Capital IQ anticipated revenue of $3.57 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $3.20 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 $1.38. The 23 earnings estimates compiled by S&P Capital IQ anticipated $1.27 per share. GAAP EPS of $1.30 for Q2 were 1.6% higher than the prior-year quarter's $1.28 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 27.0%, 460 basis points worse than the prior-year quarter. Operating margin was 15.2%, 440 basis points worse than the prior-year quarter. Net margin was 13.4%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.46 billion. On the bottom line, the average EPS estimate is $1.26.
Next year's average estimate for revenue is $14.18 billion. The average EPS estimate is $5.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,216 members out of 1,317 rating the stock outperform, and 101 members rating it underperform. Among 399 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 380 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 $30.02.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Seagate Technology Public. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Seagate Technology Public to My Watchlist.
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.