Seagate Tech First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Seagate Technology PLC (NASDAQ:STX) will unveil its latest earnings on Tuesday, October 30, 2012. Seagate Technology is a provider of hard disk drives. It designs, manufactures, markets and sells hard disk drives. The company produces a range of disk drive products addressing enterprise applications.

Seagate Technology PLC Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.71 per share, a rise of more than fivefold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $2.33. Between one and three months ago, the average estimate moved down. It also has dropped from $1.87 during the last month. For the year, analysts are projecting net income of $6.74 per share, a decline of 0.1% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 10 cents, coming in at profit of $2.41 per share versus a mean estimate of net income of $2.51 per share. In the third quarter of the last fiscal year, the company beat estimates by 55 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 751.3% to $1.01 billion ($2.33 a share) from $119 million (26 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 56.8% to $4.48 billion from $2.86 billion.

Wall St. Revenue Expectations: On average, analysts predict $3.77 billion in revenue this quarter, a rise of 34.2% from the year-ago quarter. Analysts are forecasting total revenue of $14.89 billion for the year, a decline of 0.3% from last year’s revenue of $14.94 billion.

Stock Price Performance: Between August 28, 2012 and October 24, 2012, the stock price had fallen $5.97 (-17.7%), from $33.67 to $27.70. The stock price saw one of its best stretches over the last year between January 23, 2012 and February 3, 2012, when shares rose for 10 straight days, increasing 34.2% (+$6.73) over that span. It saw one of its worst periods between October 2, 2012 and October 10, 2012 when shares fell for seven straight days, dropping 6.8% (-$2.05) over that span.

Analyst Ratings: There are mostly holds on the stock with 12 of 18 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.86 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.02 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.7% to $3.4 billion while assets decreased 0.9% to $6.31 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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