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Seagate (STX) Beats Q2 Earnings and Revenue Estimates
STXSeagate(STX) ZACKS·2025-01-21 23:16

Earnings Performance - Seagate reported quarterly earnings of 203pershare,beatingtheZacksConsensusEstimateof2 03 per share, beating the Zacks Consensus Estimate of 1 88 per share, representing a 7 98% earnings surprise [1] - The company's earnings per share (EPS) for the same quarter last year was 012,showingsignificantyear−over−yeargrowth[1]−Inthepreviousquarter,Seagatepostedearningsof0 12, showing significant year-over-year growth [1] - In the previous quarter, Seagate posted earnings of 1 58 per share, surpassing the expected 148pershare,witha6761 48 per share, with a 6 76% surprise [1] - Over the last four quarters, Seagate has consistently surpassed consensus EPS estimates [2] Revenue Performance - Seagate reported revenues of 2 33 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0 64% [2] - This represents a significant increase from the year-ago revenues of 156billion[2]−Thecompanyhastoppedconsensusrevenueestimatesthreetimesoverthelastfourquarters[2]StockPerformance−Seagateshareshavegainedapproximately1321 56 billion [2] - The company has topped consensus revenue estimates three times over the last four quarters [2] Stock Performance - Seagate shares have gained approximately 13 2% since the beginning of the year, outperforming the S&P 500's gain of 2% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is 2 05 on 237billioninrevenues[7]−Forthecurrentfiscalyear,theconsensusEPSestimateis2 37 billion in revenues [7] - For the current fiscal year, the consensus EPS estimate is 7 75 on 935billioninrevenues[7]−TheestimaterevisionstrendforSeagateismixed,translatingintoaZacksRank3(Hold),indicatingthesharesareexpectedtoperforminlinewiththemarket[6]IndustryContext−SeagatebelongstotheZacksComputer−IntegratedSystemsindustry,whichiscurrentlyinthebottom409 35 billion in revenues [7] - The estimate revisions trend for Seagate is mixed, translating into a Zacks Rank 3 (Hold), indicating the shares are expected to perform in line with the market [6] Industry Context - Seagate belongs to the Zacks Computer - Integrated Systems industry, which is currently in the bottom 40% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - IBM, another company in the same industry, is expected to report quarterly earnings of 3 74 per share, representing a year-over-year change of -3 4% [9] - IBM's revenues are expected to be $17 6 billion, up 1 3% from the year-ago quarter [9]