Seagate Technology (NASDAQ:STX) announces its next round of earnings this Wednesday, July 21. Here is Benzinga’s everything-that-matters guide for this Wednesday’s Q4 earnings announcement.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company’s profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Seagate Technology EPS is expected to be around $1.84, according to sell-side analysts. Sales will likely be near $2.95 billion. In the same quarter last year, Seagate Technology reported earnings per share of $1.2 on revenue of $2.52 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the “consensus estimates”; these consensus estimates can have a significant effect on a company’s performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an “earnings surprise”, which can really move a stock depending on the difference between actual and estimated values.
The Wall Street consensus estimate for earnings would represent a 53.33% increase for the company. Revenue would be up 17.2% from the same quarter last year. Here is how the company’s reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 1.32 | 1.13 | 0.88 | 1.29 |
| EPS Actual | 1.48 | 1.29 | 0.93 | 1.20 |
| Revenue Estimate | 2.68 B | 2.56 B | 2.34 B | 2.61 B |
| Revenue Actual | 2.73 B | 2.62 B | 2.31 B | 2.52 B |
Stock Performance
Over the last 52-week period, shares of Seagate Technology are up 70.59%.
Do not be surprised to see the stock move on comments made during its conference call. Seagate Technology is scheduled to hold the call at 09:00:00 ET and can be accessed here.
