Seagate Technology (Nasdaq: STX) has been riding a wave of positive momentum in the stock market today, enjoying a 4% surge. Investors are now eagerly anticipating the company’s upcoming earnings report to see if this upward trend will continue through the night.
Reflecting on Seagate’s stock performance in 2024, it was a year marked by fluctuations. Despite a strong start and promising year-to-date returns leading up to October, a significant 23% decline from October 22nd onwards wiped out earlier gains. However, 2025 seems to have brought a brighter outlook, with the stock up by an impressive 18% so far.
As the market eagerly awaits Seagate’s Q2 2025 earnings report, scheduled for release after the closing bell today, analysts are crunching the numbers and setting expectations for the storage specialist. Wall Street projections for the second fiscal quarter, covering the period from October to December 2024, are as follows:
– Revenue: $2.32 Billion
– Normalized EPS: $1.88
– GAAP EPS: $1.64
– Operating Income: $505.7 Million
These anticipated figures represent a significant improvement from the previous year’s Q2 results. In fiscal 2024, Seagate reported revenue of $1.655 billion, operating income of $183 million, and a normalized earnings per share of $0.33.
Looking ahead to the next quarter, Wall Street is eyeing the following guidance for Seagate’s Q3 2025:
– Revenue: $2.20 Billion
– Normalized EPS: $1.71
– GAAP EPS: $1.57
– Operating Income: $464.9 Million
Investors and analysts will be closely monitoring tonight’s earnings release for key insights into Seagate’s performance. Here are a couple of focal points to keep an eye on:
HDD Margins: The margins in Seagate’s hard disk drive (HDD) business have played a pivotal role in the company’s recent return to profitability. With Non-GAAP margins in the mid-30% range reported in the last quarter, sustaining this trend will be crucial for Seagate to meet its targets over the coming months.
AI Commentary: As the tech industry places a spotlight on artificial intelligence (AI), Seagate has positioned itself to benefit from the growing demand for mass-capacity HDDs being driven by AI applications. Analysts will be keen to hear insights on how cloud computing and AI trends are shaping up as we progress into 2025.
With the stage set for Seagate’s earnings announcement tonight, market watchers are poised to dissect the numbers and statements to gauge the company’s trajectory moving forward. Stay tuned for the latest updates on Seagate Technology’s financial performance and strategic outlook.
