Data storage manufacturer Seagate (NASDAQ:STX) will be announcing earnings results tomorrow afternoon. Here's what to look for.

Last quarter Seagate Technology reported revenues of $1.56 billion, down 17.6% year on year, in line with analyst expectations. It was a very strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

Is Seagate Technology buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Seagate Technology's revenue to decline 10.7% year on year to $1.66 billion, improvement on the 33.6% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates six times over the last two years.

Looking at Seagate Technology's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Micron Technology delivered top-line growth of 57.7% year on year, beating analyst estimates by 8.8% and SMART reported revenue decline of 26.7% year on year, missing analyst estimates by 0.1%. Micron Technology traded up 14.1% on the results, and SMART was down 24.1%.

Read our full analysis of Micron Technology's results here and SMART's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 9.1% over the last month. Seagate Technology is down 7.7% during the same time, and is heading into the earnings with analyst price target of $92, compared to share price of $81.4.

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