Analysts are expecting the company's earnings and revenue to decline year-over-year.
For the latest quarter, analysts are projecting the company to post earnings of 94 cents per share on revenue of $3.19 billion.
In the same period the previous year, the company posted earnings of $1.10 per share on revenue of $3.3 billion.
Separately, Trade-Ideas LLC, which provides idea generation technology and real-time risk management analytics, said yesterday that Seagate Technology is a post-market leader candidate as the company has an average dollar-volume of $288.2 million.
On Thursday, shares are rallying 3.13% to $50.97.
Seagate Technology designs, manufactures, and sells electronic data storage products in the Asia Pacific, the Americas, and EMEA countries
Separately, TheStreet Ratings team rates SEAGATE TECHNOLOGY PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEAGATE TECHNOLOGY PLC (STX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue fell significantly faster than the industry average of 35.9%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market, SEAGATE TECHNOLOGY PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The debt-to-equity ratio of 1.23 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, STX's quick ratio is somewhat strong at 1.44, demonstrating the ability to handle short-term liquidity needs.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, STX has underperformed the S&P 500 Index, declining 18.89% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- The gross profit margin for SEAGATE TECHNOLOGY PLC is currently lower than what is desirable, coming in at 33.78%. Regardless of STX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, STX's net profit margin of 8.73% is significantly lower than the industry average.
- You can view the full analysis from the report here: STX Ratings Report