Seagate Ups Q1 Earnings Guidance, Maintains Revenue Outlook
Zacks Investment Research | Sep 18, 2019 10:34PM ET
Shares of Seagate Technology plc (NASDAQ:STX) closed 1.3% up on Sep 18 after the company updated first-quarter fiscal 2020 earnings guidance.
The company now projects non-GAAP earnings to be 99 cents (+/- 5%) per share, up from previously guided 90 cents (+/-5%). This reflects an improvement of 10% considering the mid-point. Notably, the Zacks Consensus Estimate for first-quarter earnings is currently pegged at 89 cents per share.
Management notes that reduction in estimated depreciation expense pertaining to useful life of capital equipment by approximately $25 million resulted in an increase in 9 cents per share.
Nonetheless, the company continues to anticipate first-quarter fiscal 2020 revenues to be 2.55 billion (+/- 5%). The Zacks Consensus Estimate for revenues is pegged at $2.55 billion.
Seagate provided no updates on margins. Earlier, the company had projected gross margins to be approximately flat on a sequential basis.
Notably, Seagate stock has returned 51% year to date, outperforming Original post
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