Q2 Preview: Following Strong Preannouncement from Seagate (STX), Investors Looking for Upside to FY12 Outlook
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Price: $850.00 -0.03%
Rating Summary:
30 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
30 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of Seagate Technology (NYSE: STX) are trading up nearly 0.7 percent Tuesday ahead of the release of its second-quarter results after the closing bell.
The Wall Street quarterly consensus for Seagate Technology is $1.08 per share in earnings on $3.15 billion in sales. During the second quarter of last year, the company reported earnings of $0.33 per share on $2.72 billion in total sales.
For the fiscal year 2012, analysts on the Street are currently estimating $4.89 per share in earnings on $14.68 billion in total sales.
The second quarter conference call is scheduled for 5:00 pm ET 2:00 pm PT.
Notably, Seagate offered better-than-expected second-quarter guidance on January 4th. Shares rose about 6 percent on the day after the updated outlook.
According to data from Bloomberg, shares of Seagate Technology have 15 Buy ratings, eight Hold ratings and one Sell rating. The average price target on shares of STX is $24.50 with a range from $16 to $35.
Analyst Comments:
JPMorgan suggested interest around the stock has risen greatly since the company raised its quarterly dividend from $0.18 per share to $0.25 and added an additional $1 billion to its buyback plan. The firm believes investors are expecting management will raise it fiscal 2012 guidance.
“Despite this dynamic, we caution investors that in the next 2-3 months we could start to see investors anticipating a peak in favorable pricing and margin trends, which could lead to a sudden rotation out of Seagate shares by momentum investors in particular,” comments an analyst at JPMorgan. “To become more constructive, we need to see how the HDD industry’s pricing, margin, and capacity conditions evolve once the Thailand flood impact has been overcome and the Hitachi GST-related consolidation event is in the rearview mirror.”
JPMorgan reaffirmed a Neutral rating on the company going into the release.
Brean Murray Carret & Co. is bullish on shares of STX with a Buy rating and $26 price target. For the quarter, the firm sees earnings of $1.02 per share, driven by significant margin growth. An analyst at the firm said it’s becoming more “difficult not to argue greater appreciation.”
The Wall Street quarterly consensus for Seagate Technology is $1.08 per share in earnings on $3.15 billion in sales. During the second quarter of last year, the company reported earnings of $0.33 per share on $2.72 billion in total sales.
For the fiscal year 2012, analysts on the Street are currently estimating $4.89 per share in earnings on $14.68 billion in total sales.
The second quarter conference call is scheduled for 5:00 pm ET 2:00 pm PT.
Notably, Seagate offered better-than-expected second-quarter guidance on January 4th. Shares rose about 6 percent on the day after the updated outlook.
According to data from Bloomberg, shares of Seagate Technology have 15 Buy ratings, eight Hold ratings and one Sell rating. The average price target on shares of STX is $24.50 with a range from $16 to $35.
Analyst Comments:
JPMorgan suggested interest around the stock has risen greatly since the company raised its quarterly dividend from $0.18 per share to $0.25 and added an additional $1 billion to its buyback plan. The firm believes investors are expecting management will raise it fiscal 2012 guidance.
“Despite this dynamic, we caution investors that in the next 2-3 months we could start to see investors anticipating a peak in favorable pricing and margin trends, which could lead to a sudden rotation out of Seagate shares by momentum investors in particular,” comments an analyst at JPMorgan. “To become more constructive, we need to see how the HDD industry’s pricing, margin, and capacity conditions evolve once the Thailand flood impact has been overcome and the Hitachi GST-related consolidation event is in the rearview mirror.”
JPMorgan reaffirmed a Neutral rating on the company going into the release.
Brean Murray Carret & Co. is bullish on shares of STX with a Buy rating and $26 price target. For the quarter, the firm sees earnings of $1.02 per share, driven by significant margin growth. An analyst at the firm said it’s becoming more “difficult not to argue greater appreciation.”
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