Seagate Technology Earnings Fall Short of Analyst Expectations
Seagate Technology, a data storage provider, recently released its quarterly earnings report for the period ending April 20th. The business reported earnings per share of ($0.28), which was lower than analysts’ consensus estimates of $0.21 by ($0.49). The company also generated revenue of $1.86 billion, compared to the expected $1.98 billion.
These numbers reflect a decline in the company’s revenue by 33.6% in comparison to its earnings during the same quarter last year, which earned a profit of $1.65 EPS. As a result, Seagate Technology had a negative net margin of 1.91% and a negative return on equity of 69.08%.
Despite these disappointing figures, there are some areas that give investors reason to be hopeful for the future outlook of Seagate Technology shares. For example, Senior Vice President Katherine Schuelke sold 3,487 shares of STX stock at an average price of $62.09 on May 26th for a total value of $216,507.83.
The company’s recent pivot towards cloud-based storage services will have an important impact moving forward as more individuals and businesses use these types of platforms to store essential information in remote locations and their futures move increasingly digital.
In addition to this strategic shift towards newer technology forms such as machine learning AI solutions through partnerships with Google Cloud and IBM entered within just this month alone make them appear confident about their direction and goals for growth.
Looking at Seagate’s share prices today shows that they opened at $65.29 on Thursday with an average moving average over 50 days of $60.64 and two hundred days set at unadjusted from rest intervals set at around 61K in valuation control practices as well as fluctuations which themselves are nothing next compared between lows approximately worths circa 47.47 through the remaining, highest peak marking over 83.78 on record for performance results.
While the performance of Seagate Tech may be disappointing to some in the investment community, there is hope for its future growth with new investments in cloud-based storage and recent partnerships that could position the company as a leader in emerging technology fields. Investors should pay close attention to developments within this space and how they impact Seagate’s performance over time.
Seagate Technology Holdings plc
STX
Sell
Updated on: 17/06/2023
Mixed Analyst Reviews of Seagate Technology’s Stock Value Amidst Market Trends
Seagate Technology Holdings plc (NASDAQ:STX) is a top provider of data storage solutions, but despite its accolades and market position, the company continuously finds itself in the midst of analyst reviews and price reduction reports. Recently, Zacks Research issued a note to investors announcing their reduced Q4 2023 EPS estimates for the storage giant. The prediction of earnings per share fell from ($0.32) per share to ($0.33) per share. This news caused significant concern among investors.
Furthermore, Seagate Technology currently has an estimated full-year earnings of ($0.34) per share according to Zacks Research, with projections for future quarters ranging from $0.00 EPS in Q1 2024 to $1.35 EPS in Q3 2025. While these numbers suggest potential growth opportunities on the horizon, recent reports indicate that several other research analysts have expressed apprehension about Seagate’s ability to deliver on their promises.
Northland Securities, for example, reduced their price target on STX from $74.00 to $70.00 but remained optimistic by giving the company an “outperform” rating in April’s report. However, this view is not shared by all as StockNews.com rated Seagate Technology as “sell” soon after providing updates that contributed to national media outlets reporting negative market moves around STX.
Mizuho also gave similar commentary earlier last quarter by dropping their price target on shares of Seagate Technology from $82.00 down to $72.00 while still maintaining a “buy” rating for those seeking long-term investments that stick with strong brands like Seagate.
TD Cowen voiced opinions that were somewhere between Northland and Mizuho by lowering their price objective on Seagate shares from $72 down to $70 while also providing an “outperform” rating.
Such mixed contemporary ratings from Coate & Co., JPMorgan Chase & Co., amongst other firms indicate complexity in interpreting Seagate Technology’s stock value amidst various market trends.
The recent report from Zacks Research indicates that Seagate Technology is on tenterhooks, especially after recently announcing their quarterly dividend payout, which will be paid out on July 5th to shareholders of record as of June 21st. Shareholders would receive $0.70 per share or an annualized $2.80, qualifying Seagate for a yield of 4.29%.
It remains to be seen how these varying opinions will impact the company’s long-term growth prospects and whether STX can adhere to its promises and deliver outstanding results despite macroeconomic challenges and regulatory bodies scrutinizing every move in this technology space.
