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Singapore-based Seagate Technology Holdings plc (STX) provides data storage technology and infrastructure solutions in Singapore, the U.S., and internationally. With a market cap of $22.5 billion, Seagate operates as one of the largest manufacturers of hard disk drives in the world. It is expected to release its first-quarter earnings on Thursday, Oct. 24.
Ahead of the event, analysts expect Seagate to report an adjusted profit of $1.26 per share, up 470.6% from a loss of $0.34 per share reported in the year-ago quarter. It has surpassed or met Wall Street’s EPS estimates in each of the past four quarters. Its adjusted EPS for the last reported quarter grew by 400% to $0.87, surpassing the consensus estimates by 45%.
For fiscal 2025, analysts expect Seagate to report an adjusted EPS of $6.72, up 873.9% from $0.69 in fiscal 2024. In fiscal 2026, its adjusted EPS is expected to grow 48.1% year-over-year to $9.95.
STX has gained 24.3% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 19.4% gains and the Technology Select Sector SPDR Fund’s (XLK) 16.2% returns during the same time frame.
Shares of Seagate surged 4% after the release of its fiscal 2024 earnings on July 23. The company showcased a notable improvement in profitability, with its net income surging to $335 million, up from the loss of $529 million incurred in fiscal 2023, which was primarily attributed to macroeconomic disruptions and a hefty $300 million settlement for alleged violations of U.S. Export Administration Regulations.
However, Seagate’s revenues declined 12.3% annually to $6.6 billion. Plus, the initial optimism in the market was short-lived, as Seagate’s shares plunged 5.1% in the subsequent trading session and continued to decline over the next three sessions.
The consensus opinion on STX stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 20 analysts covering the stock, 10 recommend “Strong Buy,” one suggests “Moderate Buy,” seven advise “Hold,” and two advocate “Strong Sell” rating.
The mean price target of $118.44 suggests a potential upside of 11.6% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
