Seagate Technology (STX) Reports Earnings Tomorrow: What To Expect

Data storage manufacturer Seagate (NASDAQ:STX) will be reporting results tomorrow afternoon. Here's what you need to know.

Seagate Technology met analysts' revenue expectations last quarter, reporting revenues of $1.66 billion, down 11% year on year. It was a strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

Is Seagate Technology a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Seagate Technology's revenue to grow 16.5% year on year to $1.87 billion, a reversal from the 39% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.74 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Seagate Technology has missed Wall Street's revenue estimates six times over the last two years.

Looking at Seagate Technology's peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron Technology delivered year-on-year revenue growth of 81.5%, beating analysts' expectations by 2%, and SMART reported a revenue decline of 12.7%, in line with consensus estimates. Micron Technology traded down 7.1% following the results while SMART was up 26.3%.

Read our full analysis of Micron Technology's results here and SMART's results here.

Investors in the semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Seagate Technology's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $100.2 (compared to the current share price of $103.22).

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