Seagate (STX) got here out with quarterly earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.38 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 13.85%. 1 / 4 in the past, it was anticipated that this digital storage maker would put up earnings of $1.10 per share when it really produced earnings of $1.29, delivering a shock of 17.27%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
Seagate, which belongs to the Zacks Laptop- Storage Units business, posted revenues of $2.73 billion for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 2.72%. This compares to year-ago revenues of $2.72 billion. The corporate has topped consensus income estimates two occasions over the past 4 quarters.
The sustainability of the inventory’s fast worth motion primarily based on the recently-released numbers and future earnings expectations will largely depend upon administration’s commentary on the earnings name.
Seagate shares have added about 32.6% for the reason that starting of the 12 months versus the S&P 500’s acquire of 10.1%.
What’s Subsequent for Seagate?
Whereas Seagate has outperformed the market thus far this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified currently.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable monitor document of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Seagate was combined. Whereas the magnitude and course of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in step with the market within the close to future. You may see the whole checklist of at this time’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $1.61 on $2.86 billion in revenues for the approaching quarter and $5.08 on $10.47 billion in revenues for the present fiscal 12 months.
Buyers ought to be conscious of the truth that the outlook for the business can have a cloth impression on the efficiency of the inventory as nicely. When it comes to the Zacks Trade Rank, Laptop- Storage Units is at the moment within the prime 38% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
Need the newest suggestions from Zacks Funding Analysis? At this time, you may obtain 7 Greatest Shares for the Subsequent 30 Days. Click on to get this free report
Seagate Expertise PLC (STX): Free Inventory Evaluation Report
To learn this text on Zacks.com click on right here.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.