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Research Alert: Stx Easily Beats Expectations On Ai Strength; Nearly Sold Out Through Cy 2027

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Q3 results exceeded expectations with revenue of $3.11B (+44% Y/Y) beating consensus of $2.96B and non-GAAP EPS of $4.10 (+116% Y/Y) crushing expectations for $3.50. STX's outlook was even more impressive, with Q4 guidance midpoints of $3.45B in revenue and $5.00 in EPS beating by 9% and 26%, respectively. Gross margin of 47.0% (+1,080 bps Y/Y) and operating margin of 37.5% (+1,400 bps) demonstrate impressive pricing power and a rising HAMR mix, while FCF of $953M exceeded expectations for $762M and roughly quadrupled Y/Y, helping net leverage decline to 0.7x from 1.1x last quarter. Perhaps most important, nearline capacity (90% of exabytes shipped in Q3) is now nearly sold out through CY 2027, with customer discussions extending into 2028, a significant extension from Q2's update (sold out through CY 2026). Data center revenue of $2.5B accelerated to 55% Y/Y growth, and we see a long runway as AI inferencing elevates demand for high-capacity nearline drives, with Mozaic 4+ (44TB per drive) leading the way.

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US Crude Inventories Fall, API Says

Data from the American Petroleum Institute revealed Tuesday that US crude oil inventories declined by 1.79 million barrels in the week ended April 24, following a 4.40-mmbbl draw the previous week, and compared with analysts' estimate of a 300,000-bbl decline, according to a Bloomberg-compiled survey.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.

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Research Alert: Enph Posts In-line Results And Guidance As U.s. Resi Sell-through Deteriorates

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ENPH posted Q1 sales of $283M (-21% Y/Y), near consensus ($282M). Non-GAAP EPS of $0.47 (-31% Y/Y) also slightly beat expectations ($0.45). Non-GAAP gross margin of 43.9% declined 220 bps sequentially and 500 bps Y/Y, mainly due to lower sales and elevated tariff impacts of 430 bps. U.S. demand deteriorated as expected, with sell-through falling 48% Q/Q and 18% Y/Y as the residential solar credit expired at year-end 25. ENPH disclosed $844M in TPO agreements YTD, which we view as supportive for future residential solar growth. The company also announced a new 1.25 MW data center product targeting 800-V AI racks. We think this product offers upside around 2028. However, we expect minimal near-term price movement, as the market is crowded and we view the announcement as largely expected. Q2 guidance calls for a sales midpoint of $295M (-19% Y/Y), matching consensus, with a gross margin of 45.5% exceeding the Street view (44.5%). We estimate Section 45-X credits provided about 1,000 bps of margin benefit in Q1.

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Oil & Energy

US Oil Update: Futures Gain as Trump Signals Dissatisfaction With Iran Proposal

Crude oil futures climbed in after-hours trading on Tuesday, buoyed by reports that President Trump is dissatisfied with Iran's latest proposal to end the Middle East conflict and reopen the Strait of Hormuz, as markets weigh the UAE's decision to exit OPEC.Front-month West Texas Intermediate crude futures gained 3.37% to $99.62 per barrel, while Brent futures were up 2.66% to $111.11/bbl.Soojin Kim, research analyst at MUFG, said crude edged higher as markets assessed Iran's latest proposal to revive peace talks, while disruptions in the Hormuz continued to constrain global energy supplies.President Trump reportedly told his advisors that he is not satisfied with Iran's proposal to open the Strait and end the Middle East conflict, which has roiled the global energy market. However, it was not yet clear why Trump is dissatisfied with Iran's offer.The US President said in a social media post on Tuesday that Iran wants the US to lift its blockade of the Hormuz and reopen the strategic waterway as soon as possible.Saxo Bank strategists said that US-Iran peace talks remain at an impasse, with efforts to restart negotiations stalled.Iran, on the other hand, has signaled it may be willing to accept an interim deal to reopen the Strait in exchange for an end to the blockade, according to media reports.The double blockade of the Strait by the US and Iran has ground vessel traffic to near zero, choking off flows of crude, natural gas and oil products.Iran's mission to the UN accused the US of unlawful actions that threaten international navigation, saying that any disruption to vessel traffic in the Hormuz would be the US's responsibility.Kim said Iran has reportedly tied a broader peace deal to the removal of the US naval blockade and guarantees against future attacks, but the US remains skeptical.Meanwhile, the UAE's departure from the OPEC+ alliance is set to have major ripple effects on the global oil market, especially if major producers like Saudi Arabia and Russia also increase output.Rystad Energy strategies said the UAE's departure strips the producer group of one of its core mechanisms of influence, spare capacity that can be deployed to offset disruptions or withdrawn to support prices.However, Sparta Commodities analysts said that though the producer cartel is facing renewed questions over its long-term cohesion after the departure, the immediate impact on global oil balances remains muted.On the supply front, Iran is reportedly running out of storage capacity for its crude, raising the prospect that it may be forced to cut output further. US Treasury Secretary Scott Bessent said in a social media post on Monday that the Iranian oil industry was "starting to shut in production" due to the Hormuz blockade.