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.