Can Seagate (STX) Keep the Earnings Surprise Streak Alive?

Core Insights - Seagate is positioned to potentially continue its earnings-beat streak in the upcoming report, having a history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 7.97% [1][5] Earnings Performance - In the last reported quarter, Seagate achieved earnings of $1.9 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, resulting in a surprise of 7.95% [2] - For the previous quarter, Seagate's earnings were $2.03 per share against an expected $1.88 per share, delivering a surprise of 7.98% [2] Earnings Estimates and Predictions - Estimates for Seagate have been trending higher, influenced by its history of earnings surprises, and it currently has a positive Earnings ESP of +2.34%, indicating bullish sentiment among analysts regarding its near-term earnings potential [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat, with research indicating that stocks with this combination beat consensus estimates nearly 70% of the time [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may provide more accurate predictions [7] - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [9] Investment Strategy - It is crucial for investors to check a company's Earnings ESP prior to quarterly releases to enhance the chances of successful investment decisions, utilizing tools like the Earnings ESP Filter to identify optimal stocks to buy or sell [10]