By Senad Karaahmetovic
Rosenblatt analysts believe Seagate (NASDAQ:STX) will report worse-than-expected earnings for its first quarter.
The company is expected to report earnings on Thursday, April 20. The Street expects earnings per share (EPS) of $0.24 on revenue of $1.99 billion.
“We are expecting Seagate to miss consensus earnings as under-utilization charges continue. While we believe management was very clear about the slower recovery and continued under-utilization charges, Street estimates remain above our adjustments made following management's comments,” they said in a client note.
While the analysts are cautious about STX in the near term, they remain positive on the shares “for the company's HDD technology leadership and the importance of storing data in the Age of AI.”
Last week, Morgan Stanley analysts said they expect the company’s results to come in below the guidance midpoint.
“We still expect the June Q to improve Q/Q, and believe bulls will buy any potential stock weakness post-earnings on an unchanged CY24 outlook," they wrote.
Seagate shares are up 22.1% year-to-date.