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Factors to Note Ahead of Seagate's (STX) Q3 Earnings Release
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Seagate Technology Holdings plc (STX - Free Report) is scheduled to report third-quarter fiscal 2022 earnings on Apr 27.
The company projects fiscal third-quarter non-GAAP earnings of $2.00 (+/-20 cents) per share. The Zacks Consensus Estimate for earnings per share has been steady at $1.89, which suggests an improvement of 27.7% from the year-ago quarter’s reported figure.
Seagate expects fiscal third-quarter revenues of $2.9 billion (+/- $150 million). The Zacks Consensus Estimate for revenues is pegged at $2.8 billion, which marks an increase of 2.4% from the year-ago quarter’s reported tally.
The company surpassed the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 7.5%, on average. In the past year, shares of the company have lost 5.5% of their value against the industry’s decline of 65.1%.
Seagate Technology Holdings PLC Price and EPS Surprise
Seagate’s mass storage capacity solutions, especially nearline products, are likely to have witnessed continued momentum driven by strong cloud data center demand and recovery in the enterprise market in the about-to-be-reported quarter. In the last reported quarter, revenues from mass capacity storage soared 25% year over year to $2 billion.
The company’s mass capacity portfolio is expected to reflect incremental gains from multiple varieties of its 20-terabyte drives in addition to 18 terabyte drives.
Seagate’s Lyve Cloud business is likely to have seen healthy traction among customers. Lyve Cloud is the company’s storage-as-a-service platform (only S3-compatible) intended primarily to help business organizations manage exponential unstructured data growth.
Healthy demand for solid-state drives or SSDs in data centers and increased gaming activities are expected to have lifted sales of gaming SSDs on improving demand from notebooks and video game consoles. This is likely to have favored the top-line performance in the to-be-reported quarter.
However, seasonality is likely to affect video and image applications market revenues. Moreover, declining trends witnessed in PC shipments in the first quarter of the calendar year 2022 are likely to have negatively impacted HDD sales in the company’s performance in the quarter under review. Going by the Gartner report, traditional PC shipments were down 6.8% on a year-over-year basis to 77.9 million in the quarter in first-quarter 2022.
Continued supply chain troubles, semiconductor component shortages and logistics bottlenecks witnessed globally are likely to have affected the company’s performance in the fiscal third quarter.
Higher freight costs stemming from the COVID-19 crisis, increasing expenses on product enhancements and stiff competition in the storage market are likely to have put pressure on the bottom line in the quarter under review.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Seagate this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Seagate has an Earnings ESP of -3.34% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.44 per share and $94.43 billion, respectively. AAPL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 20.3%. Shares of AAPL have gained 26.1% in the past year.
Sirius XM (SIRI - Free Report) has an Earnings ESP of +3.23% and currently has a Zacks Rank #3. Sirius XM is scheduled to report earnings results on Apr 28.
The Zacks Consensus Estimate for Sirius XM’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $2.13 billion, respectively. Sirius XM surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 22%. Shares of SIRI have gained 0.9% in the past year.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +4.52% and currently carries a Zacks Rank of 3. Booking Holdings is set to announce quarterly figures on May 4.
The Zacks Consensus Estimate for Booking Holdings’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 98 cents per share and $2.51 billion, respectively. Booking Holdings surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 19.1%. Shares of BKNG have lost 4.6% in the past year.
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Factors to Note Ahead of Seagate's (STX) Q3 Earnings Release
Seagate Technology Holdings plc (STX - Free Report) is scheduled to report third-quarter fiscal 2022 earnings on Apr 27.
The company projects fiscal third-quarter non-GAAP earnings of $2.00 (+/-20 cents) per share. The Zacks Consensus Estimate for earnings per share has been steady at $1.89, which suggests an improvement of 27.7% from the year-ago quarter’s reported figure.
Seagate expects fiscal third-quarter revenues of $2.9 billion (+/- $150 million). The Zacks Consensus Estimate for revenues is pegged at $2.8 billion, which marks an increase of 2.4% from the year-ago quarter’s reported tally.
The company surpassed the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 7.5%, on average. In the past year, shares of the company have lost 5.5% of their value against the industry’s decline of 65.1%.
Seagate Technology Holdings PLC Price and EPS Surprise
Seagate Technology Holdings PLC price-eps-surprise | Seagate Technology Holdings PLC Quote
Factors Setting the Tone for Q3
Seagate’s mass storage capacity solutions, especially nearline products, are likely to have witnessed continued momentum driven by strong cloud data center demand and recovery in the enterprise market in the about-to-be-reported quarter. In the last reported quarter, revenues from mass capacity storage soared 25% year over year to $2 billion.
The company’s mass capacity portfolio is expected to reflect incremental gains from multiple varieties of its 20-terabyte drives in addition to 18 terabyte drives.
Seagate’s Lyve Cloud business is likely to have seen healthy traction among customers. Lyve Cloud is the company’s storage-as-a-service platform (only S3-compatible) intended primarily to help business organizations manage exponential unstructured data growth.
Healthy demand for solid-state drives or SSDs in data centers and increased gaming activities are expected to have lifted sales of gaming SSDs on improving demand from notebooks and video game consoles. This is likely to have favored the top-line performance in the to-be-reported quarter.
However, seasonality is likely to affect video and image applications market revenues. Moreover, declining trends witnessed in PC shipments in the first quarter of the calendar year 2022 are likely to have negatively impacted HDD sales in the company’s performance in the quarter under review. Going by the Gartner report, traditional PC shipments were down 6.8% on a year-over-year basis to 77.9 million in the quarter in first-quarter 2022.
Continued supply chain troubles, semiconductor component shortages and logistics bottlenecks witnessed globally are likely to have affected the company’s performance in the fiscal third quarter.
Higher freight costs stemming from the COVID-19 crisis, increasing expenses on product enhancements and stiff competition in the storage market are likely to have put pressure on the bottom line in the quarter under review.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Seagate this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Seagate has an Earnings ESP of -3.34% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat earnings this season.
Apple (AAPL - Free Report) has an Earnings ESP of +0.54% and currently carries a Zacks Rank #2. Apple is slated to release quarterly numbers on Apr 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.44 per share and $94.43 billion, respectively. AAPL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 20.3%. Shares of AAPL have gained 26.1% in the past year.
Sirius XM (SIRI - Free Report) has an Earnings ESP of +3.23% and currently has a Zacks Rank #3. Sirius XM is scheduled to report earnings results on Apr 28.
The Zacks Consensus Estimate for Sirius XM’s to-be-reported quarter’s earnings and revenues is pegged at 8 cents per share and $2.13 billion, respectively. Sirius XM surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 22%. Shares of SIRI have gained 0.9% in the past year.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +4.52% and currently carries a Zacks Rank of 3. Booking Holdings is set to announce quarterly figures on May 4.
The Zacks Consensus Estimate for Booking Holdings’ to-be-reported quarter’s earnings and revenues is pegged at a loss of 98 cents per share and $2.51 billion, respectively. Booking Holdings surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 19.1%. Shares of BKNG have lost 4.6% in the past year.