Seagate Technology PLC Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Seagate Technology PLC (NASDAQ:STX) will unveil its latest earnings tomorrow, Monday, January 28, 2013. 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 $1.27 per share, a decline of 3.8% 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 $1.79. Between one and three months ago, the average estimate moved down. It has risen from $1.26 during the last month. Analysts are projecting profit to rise by 22.2% versus last year to $5.25.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting net income of $1.45 per share against an estimate of profit of $1.69 per share. The quarter before that, it missed forecasts by 10 cents.

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A Look Back: In the first quarter, profit rose more than fourfold to $582 million ($1.42 a share) from $140 million (32 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 32.8% to $3.73 billion from $2.81 billion.

Here’s how Seagate Technology PLC¬†traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Stock Price Performance: Between November 21, 2012 and January 22, 2013, the stock price had risen $11.14 (41.6%), from $26.75 to $37.89. 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.

Wall St. Revenue Expectations: On average, analysts predict $3.58 billion in revenue this quarter, a rise of 11.9% from the year-ago quarter. Analysts are forecasting total revenue of $14.2 billion for the year, a decline of 5% from last year’s revenue of $14.94 billion.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 56.8% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.09 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: There are mostly holds on the stock with 13 of 20 analysts surveyed giving that rating.

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