Seagate (STX) Tops Q3 Earnings and Revenue Estimates

Group 1 - Seagate reported quarterly earnings of $1.90 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, and showing a significant increase from $0.33 per share a year ago, representing an earnings surprise of 7.95% [1] - The company achieved revenues of $2.16 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.34%, and up from $1.66 billion year-over-year [2] - Seagate has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] Group 2 - The stock's immediate price movement will largely depend on management's commentary during the earnings call, as well as future earnings expectations [3][4] - Despite outperforming the market this year, the current estimate revisions trend for Seagate is unfavorable, resulting in a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $2.28 on revenues of $2.4 billion, and for the current fiscal year, it is $7.60 on revenues of $9.02 billion [7] Group 3 - The Computer - Integrated Systems industry, to which Seagate belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, which may negatively impact stock performance [8] - Another company in the same industry, IonQ, Inc., is expected to report a quarterly loss of $0.27 per share, reflecting a year-over-year decline of 42.1%, with revenues projected at $7.5 million, down 1.1% from the previous year [9]