Seagate Technology Public
The 10-second takeaway
For the quarter ended March 29 (Q3), Seagate Technology Public beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share shrank significantly.
Margins contracted across the board.
Seagate Technology Public tallied revenue of $3.53 billion. The 21 analysts polled by S&P Capital IQ anticipated sales of $3.39 billion on the same basis. 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 came in at $1.26. The 24 earnings estimates compiled by S&P Capital IQ anticipated $1.16 per share. Non-GAAP EPS of $1.26 for Q3 were 52% lower than the prior-year quarter's $2.64 per share. 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.
For the 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. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.38 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $14.19 billion. The average EPS estimate is $5.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,207 members out of 1,309 rating the stock outperform, and 102 members rating it underperform. Among 372 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 352 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.
Is Seagate Technology Public the best tech stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." 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.