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Based in Dublin, Ireland, Seagate Technology Holdings plc (STX) is a global leader in data storage solutions, offering a comprehensive range of HDD, SSD, and cloud storage products. It is valued at $21.7 billion by market cap. The company is slated to announce its fiscal Q4 earnings results on Wednesday, Jul. 24.
Ahead of the event, analysts expect the electronic storage maker to report a profit of $0.60 per share, up 306.9% from a negative EPS of $0.29 per share in the year-ago quarter. The company has met or surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. The company exceeded the consensus EPS estimate by 70% in the most recent quarter, driven by higher demand for its memory chips from cloud customers.
For fiscal 2024, analysts expect STX to report EPS of $0.44, up 222.2% from a negative EPS of $0.36 in fiscal 2023. Looking ahead to fiscal 2025, EPS is anticipated to increase significantly, reaching $5.11.
Over the past 52 weeks, STX has surged 71.6%, outperforming both the S&P 500 Index's ($SPX) 26.7% rise and the S&P 500 Technology Sector SPDR's (XLK) nearly 37% increase over the same period.
STX saw its stock soar 7.4% on Mar. 26 due to an upgrade by Morgan Stanley (MS). The firm expects Seagate Technology shares to hit a new peak, driven by a recovery in the data storage market, promising prospects in heat-assisted-magnetic-recording (HAMR) technologies, and increasing demand tied to artificial intelligence (AI).
In addition, the stock surged after its Q3 earnings result on Apr. 23 because it beat profit expectations and forecasted higher Q4 profit.
Analysts' consensus view on Seagate Technology stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 20 analysts covering the stock, 10 recommend a "Strong Buy," one suggests a "Moderate Buy," seven give a "Hold" rating, and two advise a "Strong Sell." This consensus is more bullish than three months ago, with eight analysts suggesting a "Strong Buy." Currently, STX is trading above the average analyst price target of $99.72.
On the date of publication, Sohini Mondal 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.
