tiprankstipranks
Seagate Technology Increases Q4 2021 Guidance; Shares Rise 2.2%
Market News

Seagate Technology Increases Q4 2021 Guidance; Shares Rise 2.2%

Data storage company Seagate Technology (STX) has increased its revenue and earnings guidance for the upcoming fourth quarter.

Following the announcement, shares of the company rose 2.2% to close at $100.83 on June 8.

For fiscal Q4, Seagate expects its total revenue to be in the band of $2.95 billion (+/- $150 million).

Non-GAAP diluted earnings per share are expected to be $1.85 (+/- $0.15). This is against the previous expectations of $1.60 (+/- $0.15) a share.

Seagate Technology CEO Dave Mosley said, “Strong and broad-based demand for our products into the mass capacity markets and distribution channel is driving upside to our outlook.”

Mosley added, “We are excited by the positive momentum we are seeing globally and leveraging the agility of our manufacturing operations to address the rapidly changing demand environment.” (See Seagate Technology stock analysis on TipRanks)

Following the guidance announcement, Rosenblatt Securities analyst Kevin Cassidy reiterated a Buy rating on the stock but increased his price target to $110.00 from $95.00. This implies a 9.1% upside potential.

Cassidy said, “Following management’s upward revision to the June quarter guidance and CFO Gianluca Romano’s comments around increasing prices and utilization, we are convinced that Seagate is well-positioned to grow revenue, expand gross margin and profitability over the next several quarters. Importantly, Seagate’s board of directors has targeted over 70% of free cash flow as capital returns.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 9 Buys, 7 Holds, and 2 Sells. The Seagate average analyst price target of $89.78 implies 11% downside potential from current levels. Shares have gained 83.9% over the past year.

Related News :
Stitch Fix Posts Strong Revenues in Q3, Shares Surge 16%
Moderna Inks Deal with Medison Pharma; Shares Up 6.6%
Vail Resorts Posts Stronger-Than-Expected Quarterly Results

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles