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.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

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:

stx

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.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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